During a demand-pull inflation, if the Fed tries to maintain a level of real GDP above potential GDP, the AD curve will ________ and the AS curve will ________
A) not shift; shift rightward continuously
B) shift rightward continuously; shift rightward continuously
C) shift rightward once; shift rightward continuously
D) shift rightward continuously; not shift
E) shift rightward continuously; shift leftward continuously
E
You might also like to view...
What is the benefits-received principle? What are two arguments against this principle?
What will be an ideal response?
The comparative advantage of the South was in
(a) small farms producing for the local market. (b) plantation agriculture producing for export. (c) manufacturing. (d) shipbuilding and trades related to shipbuilding.
When resources are readily available, such as during the Great Depression, they can be used to produce more goods (and create more income) without causing prices to increase
Indicate whether the statement is true or false
When the market for a good is in the equilibrium
What will be an ideal response?