False. The up-sloping aggregate supply curve indicates that increases in aggregate demand (AD) can lead to higher prices (inflation) and potentially higher output. However, leftward shifts of AD can result in decreased output and lower prices, not simply demand-pull inflation. Therefore, the statement is false.
True or false: The up-sloping aggregate supply curve means that leftward shifts of AD result only in demand-pull inflation rather than increased output.
True false question.
True
False
1 answer