- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 11. Understanding Business Cycles
- Subject 7. Inflation
CFA Practice Question
Inflation can result from ______.
II. an increase in aggregate demand
III. a decrease in aggregate supply
IV. an increase in aggregate supply
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? |