MCQOPTIONS
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| 1. |
An increase in aggregate is more likely to lead to demand pull inflation if: |
| A. | Aggregate supply is perfectly elastic |
| B. | Aggregate supply is perfectly inelastic |
| C. | Aggregate supply is unit inelastic |
| D. | Aggregate supply is relatively inelastic |
| Answer» C. Aggregate supply is unit inelastic | |