Consider the figure below. The situation in Trombli is characterized by SRAS1 and AD1 when there is an increase in the money supply shifting the short-run aggregate supply curve to SRAS2. This will create __________ in the economy.   a. stagflationary pressure     b. a depression     c. inflationary pressure     d. recessionary pressure

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Consider the figure below. The situation in Trombli is characterized by SRAS1 and AD1 when there is an increase in the money supply shifting the short-run aggregate supply curve to SRAS2. This will create __________ in the economy.

 

a. stagflationary pressure  
  b. a depression  
  c. inflationary pressure  
  d. recessionary pressure
SRAS,
P
SRAS,
SRAS,
A
B
D.
AD2
AD,
GDP,
potential
Real GDP
Transcribed Image Text:SRAS, P SRAS, SRAS, A B D. AD2 AD, GDP, potential Real GDP
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