Everything else remaining the same, an increase in the expected inflation rate
A)shifts the aggregate demand curve leftward.
B)shifts the aggregate demand curve rightward.
C)creates a movement up along the aggregate demand curve.
D)shifts the short- run aggregate supply curve leftward.
E)shifts the long- run aggregate supply curve rightward.

Question

Quizplus · Accepted Answer

An increase in the expected inflation rate typically leads to an increase in consumer and business spending before prices go up, which shifts the aggregate demand curve rightward.

Everything Else Remaining the Same, an Increase in the Expected