Which of the Following Can Start an Inflation

question 54

Multiple Choice

Which of the following can start an inflation?

• A)An increase in aggregate demand
• B)An increase in aggregate supply
• C)A decrease in aggregate supply
• D)Both answers A and C are correct.

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Definitions:

Monopoly

is a market structure characterized by a single seller dominating the entire market by selling a unique product or service.

Predatory Pricing

A competitive strategy involving setting prices at very low levels with the intent to eliminate competition, potentially leading to monopoly pricing power once competitors are driven out.

Cooperative Behavior

Actions by individuals or groups that are intended to benefit others or work towards a common goal.

Sherman Act

A foundational antitrust law in the United States that prohibits monopolistic practices and promotes competition.