Holding everything else constant, which of the following would cause an increase in short-term inflation?
A)A decrease in the nominal money supply
B)A decrease in net exports
C)A decrease in consumer spending
D)A decrease in the growth rate of aggregate supply

Question

Quizplus · Accepted Answer

A decrease in the growth rate of aggregate supply would cause an increase in short-term inflation because it means there are fewer goods and services being produced, leading to higher prices if demand remains constant.

Holding Everything Else Constant, Which of the Following Would Cause