It Is Difficult for the Bank of Canada to Remove

Multiple Choice

It is difficult for the Bank of Canada to remove a sustained inflation without producing stagflation because inflationary expectations cause the

A) AD curve to shift too far to the right.
B) AD curve to shift too far to the left.
C) AS curve to continue shifting upward.
D) AS curve to continue shifting downward.
E) AD curve to continue shifting to the right.