A demand-pull inflation consists of ___________shifts in the AD curve and___________ shifts in the SAS curve.
A) rightward; leftward
B) rightward; rightward
C) leftward; leftward
D) leftward; rightward

Question

Quizplus · Accepted Answer

Demand-pull inflation occurs when there is an increase in aggregate demand (AD) without a corresponding increase in aggregate supply (AS). This can be caused by a rightward shift in the AD curve and a leftward shift in the AS curve.

A Demand-Pull Inflation Consists of ___________Shifts in the AD Curve