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Suppose that the economy is performing at its full potential and the short-term aggregate supply (SAS) curve and the aggregate demand (AD) curve intersect at

Suppose that the economy is performing at its full potential and the short-term aggregate supply (SAS) curve and the aggregate demand (AD) curve intersect at the long-term aggregate supply (LAS) line. Assume that the economy then begins to experience demand-pull inflation. What is the second step in the demand-pull inflation cycle? Question 34 options: the SAS curve shifts to the left the SAS curve shifts to the right the Ad curve shifts to the right the AD curve shifts to the left

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