A cost-push inflation spiral results if the Fedʹs response to stagflation is to keep
A. decreasing aggregate demand.
B. decreasing aggregate supply.
C. increasing aggregate demand.
D. increasing aggregate supply.
Answer:C
A cost-push inflation spiral results if the Fedʹs response to stagflation is to keep
A. decreasing aggregate demand. B. decreasing aggregate supply. C. increasing aggregate demand. D. increasing aggregate supply.