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In the Long Run, Demand-Pull Inflation

Question 106

Multiple Choice

In the long run, demand-pull inflation


A) starts out with a shift in the AS curve but no shift of the AD curve.
B) starts out with a rightward shift in the AD curve, followed by a resulting leftward shift of the short-run AS curve.
C) starts out with a leftward shift in the AD curve, followed by a resulting rightward shift of the short-run AS curve.
D) involves a shift of the AD curve only, with no shift of the AS curve.

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