Question: Because aggregate demand tends to move to the right further/faster than short-run aggregate supply, it is common for an economy to have a low level

Because aggregate demand tends to move to the right further/faster than short-run aggregate supply, it is common for an economy to have a low level of __________ even when at steady-state output.

Choose from the following:

Deflation

Demand- pull inflation

Cost-push inflation

Demand-push deflation

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