If Aggregate Demand Shifts Outward, the Result Will Be Inflation

question 94

True/False

If aggregate demand shifts outward, the result will be inflation.

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Definitions:

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision.

Product X

A placeholder name commonly used to represent a generic or unspecified product in discussions of economic theory and marketing.

Resources

Natural, human, and capital assets used to produce goods and services.

Diminishing Returns

A principle stating that if one factor of production is increased while other factors are held constant, the incremental output gained will eventually decrease.