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With Demand-Pull Inflation in the Long-Run AD-AS Model,there Is

Question 115

Multiple Choice

With demand-pull inflation in the long-run AD-AS model,there is:


A) a decrease in aggregate demand that eventually increases nominal wages and causes a decrease in the short-run aggregate supply curve.
B) an increase in aggregate demand that eventually increases nominal wages and causes an increase in the short-run aggregate supply curve.
C) an increase in aggregate demand that eventually decreases nominal wages and causes a decrease in the short-run aggregate supply curve.
D) an increase in aggregate demand that eventually increases nominal wages and causes a decrease in the short-run aggregate supply curve.

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