Multiple Choice
If demand pull inflation occurs when the economy is already at potential GDP, then following the
Initial increase in aggregate demand, the
A) potential GDP line shifts rightward.
B) AS curve shifts leftward.
C) potential GDP line shifts leftward.
D) AS curve shifts rightward.
E) None of the above are correct because demand-pull inflation shifts only the aggregate demand curve.
Correct Answer:
Verified
Correct Answer:
Verified
Q44: A demand-pull inflation consists of <sub>--------------------</sub>shifts in
Q45: When the macroeconomic equilibrium is such that
Q46: The aggregate supply curve shifts<br>A)leftward if the
Q48: The <sub>--------------------</sub>the <sub>--------------------</sub> is the quantity
Q50: All of the following shift the aggregate
Q51: Because there is a<sub>--------------------</sub> relationship between the
Q52: A demand-pull inflation initially is characterized by<br>A)increasing
Q53: If people's expectations about future income improve
Q54: Which of the following shifts the aggregate
Q66: A year over year _ in the