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If Aggregate Demand (AD) is pushed into the steep portion of the SRAS Curve, the economy will experience:a. Inflationb. Unemploymentc. Inflation AND unemploymentd. Neither inflation not unemployment

1 Answer

6 votes

Answer:

a. Inflation

Step-by-step explanation:

A shift of AD to the right will move output closer to potential GDP and thus reduce unemployment, but this shift will also lead to a higher price level and upward pressure on inflation

User Will McGugan
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