What is the primary cause of demand-pull inflation? an event that causes the short-run aggregate supply curve to shift right O an event that causes the short-run aggregate supply curve to shift left an event that causes the aggregate demand curve to shift right an event that causes the aggregate demand curve to shift left

What is the primary cause of demand-pull inflation? an event that causes the short-run aggregate supply curve to shift right O an event that causes the short-run aggregate supply curve to shift left an event that causes the aggregate demand curve to shift right an event that causes the aggregate demand curve to shift left

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter23: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 2CQQ

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Question

What is the primary cause of demand-pull inflation?
an event that causes the short-run aggregate supply curve to shift right
O an event that causes the short-run aggregate supply curve to shift left
an event that causes the aggregate demand curve to shift right
an event that causes the aggregate demand curve to shift left

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Refer to the figure below. The aggregate supply curve shifting from AS1 to AS2 will cause Price level РА P2 P₁ Po — O cost-push inflation Ohyperinflation deflation A O demand-pull inflation B Y2 Y₁ Yo Aggregate output AS2 AS₁ ASO AD₁ Y
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