Refer to the diagram. The initial aggregate demand curve is AD 1 and the initial aggregate supply curve is AS 1 . In the long run, demand-pull inflation is best shown as:
A. a shift of aggregate demand from AD 1 to AD 2 followed by a shift of aggregate supply from AS 1 to AS 2 .
B. a move from d to b to a.
C. a shift of aggregate supply from AS 1 to AS 2 followed by a shift of aggregate demand from
AD 1 to AD 2 .
D. a move from a to d.
A. a shift of aggregate demand from AD 1 to AD 2 followed by a shift of aggregate supply from AS 1 to AS 2 .
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Answer the following statement true (T) or false (F)
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A) confusion of economists. B) blunder of science. C) fallacy of false cause. D) error of inclusion.