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On the Aggregate Supply Curve, an Increase in Inflation Causes

Question 27

Multiple Choice

On the aggregate supply curve, an increase in inflation causes ________, while a price shock causes ________.


A) upward movement along the curve; the curve to shift
B) downward movement along the curve; the curve to shift
C) the curve to shift; movement along the curve
D) downward movement along the curve; upward movement along the curve
E) Not enough information is given.

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