Demand-pull inflation starts with a shift of the
A) SAS curve rightward.
B) AD curve rightward.
C) SAS curve leftward.
D) AD curve leftward.

Name: Demand-pull inflation starts with a shift of the A) SAS curve rightward. B) AD curve rightward. C) SAS curve leftward. D) AD curve leftward.
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Question

Quizplus · Accepted Answer

Demand-pull inflation occurs when the aggregate demand (AD) in an economy outpaces aggregate supply, leading to higher prices. This is represented by a rightward shift of the AD curve.

Demand-Pull Inflation Starts with a Shift of the