Stagflation Is Generally Caused By

question 82

Multiple Choice

Stagflation is generally caused by:

• A)​an increase in aggregate demand.
• B)​a decrease in aggregate demand.
• C)​an increase in aggregate supply.
• D)​a decrease in aggregate supply.

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Definitions:

Note Payable

A liability in a formal written promise to pay a specific amount of money at a future date or dates.

Common Stock

Represents an equity ownership in a corporation, giving holders voting rights and a share of the company's profits via dividends.

Cash Ratio

A liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.