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Introduction to Economics 2
Introduction to Economics 2 Deneme Sınavı
Introduction to Economics 2 Deneme Sınavı Sorusu #349941
Introduction to Economics 2 Deneme Sınavı Sorusu #349941
What is the main cause of inflation?
Increased unemployment
|
Increased money supply
|
Decreased production
|
Velocity of money |
Demand shock |
Yanıt Açıklaması:
Inflation is the increase in the general level of prices. According to this definition, every factor that shifts the AD curve to the right and the AS curve to the left causes inflation. most of the economists today accept that the main factor that drives prices to increase continuously is continuously increasing money supply. This shows that whatever the initial reason to increase price level is, inflation occurs only when increasing money supply accompanies.
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