An increase in aggregate demand normally does not cause inflation.

Name: An increase in aggregate demand normally does not cause inflation.
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An increase in aggregate demand can lead to inflation if it exceeds the economy's capacity to produce goods and services, leading to an increase in prices. However, if the economy has spare capacity and resources, an increase in aggregate demand can lead to an increase in output and employment without causing inflation.

An Increase in Aggregate Demand Normally Does Not Cause Inflation