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:

Military Bases

These are facilities controlled by the military that house troops, equipment, and provide training areas and command centers in both the home country and abroad.

Government Shipyards

Facilities owned by the government for the construction, repair, and maintenance of ships.

Supreme Court

The highest judicial court in a country or state, such as the United States Supreme Court, which has ultimate appellate jurisdiction.

Suburban Homeownership

The trend of owning a private home in suburban areas, characterized by lower population density and more spacious living conditions than urban centers.