An increase in aggregate demand will result in inflation.

Name: An increase in aggregate demand will result in inflation.
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An increase in aggregate demand means that there is more demand for goods and services in the economy. As producers try to meet this higher demand, they may increase prices due to a limited supply of resources. This can result in inflation, which is a sustained increase in the general price level of goods and services in an economy.

An Increase in Aggregate Demand Will Result in Inflation