A deﬂationary boom is caused by an increase in aggregate supply.

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A deﬂationary boom is a situation in which an economy experiences a period of falling prices and rising output. This can be caused by an increase in aggregate supply, such as improvements in technology or an increase in the availability of raw materials, which leads to a decrease in production costs and an increase in the quantity of goods and services produced. This causes prices to fall as firms compete to sell their products, and can lead to a period of economic growth and expansion.

A Deﬂationary Boom Is Caused by an Increase in Aggregate