Advanced Placement (AP)

Which of the following statements is true about "demand-pull" inflation?
a. the capacity of the economy will decrease as a result
b. aggregate supply will increase as a result
c. it will result from a decrease in aggregate demand.
d. it will result in a decrease in output.
e. wages will rise as the economy moves toward long-run equilibrium

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Which of the following statements is true about "demand-pull" inflation?
a. the capacity of th...

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