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Graphically,an Increase in the Inflation Adjustment (IA)line Represents A(n)_________,and a Shift

Question 211

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Graphically,an increase in the inflation adjustment (IA) line represents a(n) _________,and a shift leftward of the long-run aggregate supply line represents a(n) ________.


A) upward inflation shock;shock to potential output
B) downward inflation shock;shock to potential output
C) excessive aggregate demand;upward inflation shock
D) shock to potential output;upward inflation shock
E) shock to potential output;downward inflation shock

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