Stagflation is often a result of
A) a negative supply shock.
B) a decrease in aggregate demand.
C) an increase in aggregate demand.
D) an increase in aggregate supply.
E) an increase in the long-run growth rate.
Correct Answer:
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Q204: Stagflation occurs when short-run aggregate supply decreases.
Q208: Figure 9.7 Q210: At the beginning of the recession of Q212: Which of the following is not an Q213: An increase in government spending will result Q214: When people became less concerned with the Q215: Which of the following is one reason Q216: What is the relationship among the AD,SRAS Q218: Figure 9.7 Q240: What is a supply shock,and why might![]()
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