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

Question

Quizplus · Accepted Answer

An increase in the expected inflation rate shifts the aggregate demand curve rightward because people will expect prices to rise in the future, so they will demand more goods and services now.

Everything Else Remaining the Same, an Increase in the Expected