Supply side inflation can be caused by
A)a continual increase in aggregate supply while aggregate demand remains unchanged.
B)a continual decrease in aggregate supply while aggregate demand remains unchanged.
C)a continual decrease in aggregate supply while aggregate demand has significant decreases.
D)a continual increase in aggregate demand while aggregate supply remains unchanged.

Question

Quizplus · Accepted Answer

Supply side inflation occurs when there is a decrease in aggregate supply, leading to higher prices if aggregate demand remains unchanged.

Supply Side Inflation Can Be Caused by