The U. S. has experienced inflation every year since 1959 due to
A) a sustained decrease in aggregate demand.
B) a sustained increase in aggregate demand accompanied by an even larger decrease in LRAS.
C) a sustained decrease in aggregate supply.
D) a sustained increase in aggregate supply accompanied by an even larger increase in aggregate demand.

Question

Quizplus · Accepted Answer

Inflation typically occurs when there is a sustained increase in aggregate demand that outpaces the increase in aggregate supply. This scenario leads to higher prices as demand for goods and services exceeds the available supply.

The U S Has Experienced Inflation Every Year Since 1959 Due to Due