Question: Draw a conventional aggregate demand curve on a graph. Then add three different aggregate supply curves, labeled AS 1:Horizontal curve AS 2:Upward-sloping curve AS 3:Vertical

Draw a conventional aggregate demand curve on a graph. Then add three different aggregate supply curves, labeled

AS1:Horizontal curve

AS2:Upward-sloping curve

AS3:Vertical curve

all intersecting the AD curve at the same point.

If AD were to increase which AS curve would lead to the least inflation? Show the graph roughly.

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