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    Exam 9: Aggregate Demand and Supply
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    Describe Demand-Pull Inflation If the Economy Begins in Long-Run Equilibrium
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Describe Demand-Pull Inflation If the Economy Begins in Long-Run Equilibrium

Question 59

Question 59

Essay

Describe demand-pull inflation if the economy begins in long-run equilibrium at full employment.Draw a graph to support your response.

Correct Answer:

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Demand-pull inflation occurs when aggreg...

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