Graphically, demand inflation is represented by a: rightward shift of the AD curve along an ascending AS curve. left shift of the AS curve along a descending AD
curve. shift to the left of the AS curve along an ascending AD curve. rightward shift of the AD curve along a descending AS
curve.
Answer 1
a) rightward shift of the AD curve along an ascending AS
curve.
Demand inflation increases AD, which shifts the AD curve
to the right along the ascending AS curve.
Price AS AD AD’ 0 YY Exit