One-shot inflation can result from an increase in aggregate demand or an increase in aggregate supply.

Name: One-shot inflation can result from an increase in aggregate demand or an increase in aggregate supply.
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Question

Quizplus · Accepted Answer

One-shot inflation typically results from an increase in aggregate demand, not an increase in aggregate supply. An increase in aggregate supply would generally lead to lower prices and higher output, not inflation.

One-Shot Inflation Can Result from an Increase in Aggregate Demand