CFA Practice Question

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CFA Practice Question

Inflation can result from ______.

I. a decrease in aggregate demand
II. an increase in aggregate demand
III. a decrease in aggregate supply
IV. an increase in aggregate supply
Correct Answer: II and III

User Contributed Comments 3

User Comment
schweitzdm hmm, I said I and IV.

I assumed II and III were normal market movements along curves rather than inflationary.
jrwilt93 Remember, inflation is more dollars chasing fewer goods. So either there's more demand or less supply.
khalifa92 why dollars everyone here biased?
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