Without a change in target inflation, anything that shifts the aggregate demand curve to the right will cause:
A)A temporary increase in output
B)A permanent reduction in inflation
C)A temporary increase in inflation
D)A decrease in inflation in the long run

Question

Quizplus · Accepted Answer

A shift in the aggregate demand curve to the right, without a change in target inflation, will lead to a temporary increase in output.

Without a Change in Target Inflation, Anything That Shifts the Aggregate