An increase in aggregate demand causes stagflation.

Name: An increase in aggregate demand causes stagflation.
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An increase in aggregate demand typically leads to inflation, but not necessarily stagflation. Stagflation is a situation where there is high inflation and stagnant economic growth, which can occur due to a variety of factors, including supply shocks or mismanagement of macroeconomic policies.

An Increase in Aggregate Demand Causes Stagflation