In a persisting demand-pull inflation
A. short-run aggregate supply decreases and aggregate demand increases.
B. aggregate demand and short-run aggregate supply both decrease.
C. aggregate demand increases and long-run aggregate supply decreases.
D. None of the above answers are correct.
Answer:A
In a persisting demand-pull inflation
A. short-run aggregate supply decreases and aggregate demand increases. B. aggregate demand and short-run aggregate supply both decrease. C. aggregate demand increases and long-run aggregate supply decreases. D. None of the above answers are correct.