Inflation in advanced economies is ________ the result of excessive demand due to monetary or fiscal policy.

Question

Quizplus · Accepted Answer

Inflation in advanced economies is seldom the result of excessive demand due to monetary or fiscal policy. Other factors such as supply disruptions, changes in exchange rates, and changes in commodity prices can also contribute to inflation. However, it is possible for inflation to be caused by excessive demand in certain circumstances, such as when an economy is operating at full capacity with high levels of employment and production. Therefore, choice B is the most accurate.

Inflation in Advanced Economies Is ________ the Result of Excessive