Which of the Following Would Unambiguously Generate Deflation

question 235

Multiple Choice

Which of the following would unambiguously generate deflation?

• 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:

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