Inflation in the U.S.economy tends to be
A)a finite, one-time event resulting from a shock.
B)ongoing, as increases in aggregate demand generally exceed the increases in aggregate supply.
C)a finite, one-time event, as the Fed actively works to eliminate all inflation.
D)ongoing, as aggregate supply is continually shifting to the left.

Question

Quizplus · Accepted Answer

Inflation in the U.S. economy is often ongoing because increases in aggregate demand typically outpace increases in aggregate supply, leading to sustained upward pressure on prices.

Inflation in the U.S.economy Tends to Be