Persistent inflation in an economy is only possible if
A)supply issues come into full effect.
B)the AD curve shifts to the left over time.
C)the supply side is dominant.
D)the AD curve shifts to the right over time.

Question

Quizplus · Accepted Answer

Persistent inflation in an economy is typically associated with a continuous rightward shift of the Aggregate Demand (AD) curve. This shift indicates increasing demand across the economy, which, if not matched by a corresponding increase in supply, leads to higher prices, hence inflation.

Persistent Inflation in an Economy Is Only Possible If