Which of the Following Will Cause Stagflation

question 13

Multiple Choice

Which of the following will cause stagflation?

• A) an increase in the money supply (which shifts the economy's aggregate demand curve to the right).
• B) an increase in oil prices (which shifts the economy's aggregate supply curve to the left).
• C) a decrease in the money supply (which shifts the economy's aggregate demand curve to the right).
• D) technical progress (which shifts the economy's aggregate supply curve to the right).

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