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During a Demand-Pull Inflation, If the Fed Tries to Maintain

Question 75

Multiple Choice

During a demand-pull inflation, if the Fed tries to maintain a level of real GDP above potential GDP, the AD curve will -------------------- and the AS curve will --------------------.


A) shift rightward continuously; shift rightward continuously
B) not shift; shift rightward continuously
C) shift rightward continuously; not shift
D) shift rightward continuously; shift leftward continuously
E) shift rightward once; shift rightward continuously

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