Which of the following can cause inflation?
A) increases in short-run aggregate supply
B) increases in long-run aggregate supply
C) decreases in short-run aggregate supply
D) decreases in aggregate demand

Question

Quizplus · Accepted Answer

Decreases in short-run aggregate supply can cause inflation because they reduce the overall amount of goods and services available in the economy, leading to higher prices for those goods and services.

Which of the Following Can Cause Inflation