Inflation Can Be Started by

question 121

Multiple Choice

Inflation can be started by

• A) a decrease in aggregate supply or a decrease in aggregate demand.
• B) an increase in aggregate supply or an increase in aggregate demand.
• C) an increase in aggregate supply or a decrease in aggregate demand.
• D) a decrease in aggregate supply or an increase in aggregate demand.

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Definitions:

Net Exports

The value of a country's total exports minus the value of its total imports, which is a component of a country's GDP.

Import Restrictions

Measures imposed by a government to control the quantity of goods coming into a country, often to protect domestic industries.

Trade Deficit

An excess of imports over exports.

Capital Flight

A large and sudden reduction in the investment of assets in a country, often due to political or economic instability.