Inflation Can Come from the Demand Side or from the Supply

question 80

True/False

Inflation can come from the demand side or from the supply side of the economy.

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Definitions:

Relative Price

Relative price is the price of one good or service compared to another, essentially indicating the trade-off between choosing one over the other.

Price Increases

Price Increases involve a rise in the cost of goods or services over time, often measured by inflation rates.

Demand Decreases

A situation where the quantity of goods and services that consumers are willing and able to purchase at a given price level declines.

Maximum Rent

Government-imposed limits on the amount a landlord can charge for leasing a property, typically to make housing more affordable.