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Stagflation could be caused by which of the following?

A.
Increase in aggregate supply
B.
Decrease in aggregate supply
C.
Increase in aggregate demand
D.
Decrease in aggregate demand
Macroeconomics
AP
College Board
Exam No：AP Macroeconomics Problem Set 5 Year：2024 Question No：APMacroeconomics2024AP0092

Answer:

B

Knowledge points:

3.1 Aggregate Demand (AD)
3.3 Short-Run Aggregate Supply (SRAS)
3.6 Changes in the AD–AS Model in the Short Run

Solution:

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