Initially, demand-pull inflation will
A. increase the price level and not change real GDP.
B. increase both the price level and increase real GDP.
C. increase the price level and decrease real GDP.
D. shift the aggregate supply curve rightward.
Answer:B
Initially, demand-pull inflation will
A. increase the price level and not change real GDP. B. increase both the price level and increase real GDP. C. increase the price level and decrease real GDP. D. shift the aggregate supply curve rightward.