Using the model of the Aggregate Demand and Aggregate Supply market, discuss how large increases in government spending (G) and transfers (Tr) can translate to higher inflationary pressures in the short run.

To answer this question, you must specifically discuss which curves in the Aggregate Demand/Aggregate Supply market will shift to create short run inflationary pressures stemming from an increase in both government spending (G) and government transfers to the household sector (Tr).