According to the dynamic AD-AS model, what is the most common cause of inflation? O A. Total spending increases faster than total production. O B. AD increases by more than LRAS. O C. The U.S. Mint prints too much currency. O D. All of the above. O E. A and B only.

According to the dynamic AD-AS model, what is the most common cause of inflation? O A. Total spending increases faster than total production. O B. AD increases by more than LRAS. O C. The U.S. Mint prints too much currency. O D. All of the above. O E. A and B only.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 3SCQ: The short run aggregate supply curve was constructed assuming that as the price of outputs...

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According to the dynamic AD-AS model, what is the most common cause of
inflation?
The Dynamic AD-AS Model
LRAS, LRAS, SRAS,
O A. Total spending increases faster than total production.
SRAS,
O B. AD increases by more than LRAS.
O C. The U.S. Mint prints too much currency.
P2
O D. All of the above.
O E. A and B only.
AD2
AD1
Real GDP (trillions of dollars)
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