Graphically, demand-pull inflation is shown as a:

A) rightward shift of the AD curve in the horizontal range of aggregate supply.

B) rightward shift of the AD curve in the intermediate or vertical ranges of aggregate supply.

C) rightward shift of the AS curve in the intermediate range of aggregate demand.

D) leftward shift of AS curve in the intermediate range of aggregate demand

ANSWER:

B) rightward shift of the AD curve in the intermediate or vertical ranges of aggregate supply.