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Which statement about inflationary pressures and the AD/AS diagram is correct? Select the best answer. Answer 2 Points Keypad Keyboard Shortcuts The AD/AS framework shows

Which statement about inflationary pressures and the AD/AS diagram is correct? Select the best answer. Answer 2 Points Keypad Keyboard Shortcuts The AD/AS framework shows that the only trigger of inflationary pressures is when aggregate demand continues to shift right when the economy is already at or near potential GDP. O Continual inflationary price increases can occur if the government stimulates aggregate demand when it is in the flat portion of the SRAS curve. < The AD/AS diagram can be used to analyze a shift in the price level but not to determine which factors will cause rev inflation to vanish or continue in the future. N

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