To Illustrate Inflation Inertia in an Aggregate Demand-Aggregate Supply Model

Multiple Choice

To illustrate inflation inertia in an aggregate demand-aggregate supply model, the short-run aggregate supply curve shifts upward because of increases in ______, and the aggregate demand curve shifts upward because of increases in ______.

A) the expected price level; the money supply
B) the money supply; the expected price level
C) output; the price level
D) the price level; output