An increase in aggregate supply causes stagflation.

Name: An increase in aggregate supply causes stagflation.
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An increase in aggregate supply typically leads to a decrease in prices, which would reduce inflationary pressures and promote economic growth. Stagflation occurs when there is a combination of high inflation and low economic growth, which is typically caused by supply-side shocks such as an increase in oil prices or a decrease in productivity.

An Increase in Aggregate Supply Causes Stagflation