Which of the Following Would Unambiguously Generate Inflation

question 112

Multiple Choice

Which of the following would unambiguously generate inflation?

• A)a decrease in aggregate demand accompanied by an increase in aggregate supply
• B)an increase in aggregate demand accompanied by an increase in aggregate supply
• C)a decrease in aggregate demand accompanied by a decrease in aggregate supply
• D)an increase in aggregate demand accompanied by a decrease in aggregate supply

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Definitions:

Begging The Question

A logical fallacy in which the conclusion of an argument is assumed in the formulation of the argument itself.

Slippery Slope

A logical fallacy that suggests a minor action will lead to major and oftentimes negative consequences without providing evidence for such a drastic outcome.

Kant

A German philosopher in the 18th century known for critical philosophy, especially his Critique of Pure Reason.

Teleological Theory

An ethical theory that holds the consequences of an action as the basis for any judgment about the morality of that action.