Explain how a demand-pull inflation would affect the economy

Reference no: EM13200246

Explain how a demand-pull inflation would affect the economy first in the short run and then in the long run. Assume that the United States is initially operating at its full-employment level of output and prices and wages are eventually flexible both upward and downward. Construct a long-run AD-AS model.

Reference no: EM13200246

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