Which graphical representation best illustrates inflation in the dynamic AD-AS model?

• A. Aggregate demand shifts significantly to the right, while short-run aggregate supply shifts slightly to the right.
• B. Aggregate demand shifts slightly to the right, while short-run aggregate supply shifts significantly to the right.
• C. Both aggregate demand and short-run aggregate supply shift equally to the right.
• D. Aggregate demand shifts to the left, while short-run aggregate supply shifts to the right.

Answer: (A)