Inflation can be started by
A) a decrease in aggregate supply or a decrease in aggregate demand.
B) a decrease in aggregate supply or an increase in aggregate demand.
C) an increase in aggregate supply or an increase in aggregate demand.
D) an increase in aggregate supply or a decrease in aggregate demand.

Question

Quizplus · Accepted Answer

Inflation is typically caused by a decrease in aggregate supply, which leads to higher prices for fewer goods, or an increase in aggregate demand, which leads to higher prices because more money is chasing the same amount of goods.

Inflation Can Be Started by