Questions and Answers
What are the shifters of Aggregate Demand (AD)?
Consumer spending, Investment spending, Government spending, Net exports
What is the cause of Demand-Pull Inflation?
AD increases faster than AS, leading to higher prices and output
What is the primary tool of Monetary Policy?
Manipulating the money supply and interest rates
What is the recommended fiscal approach during a period of inflation?
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What are the impacts of Covid-19 on inflation according to the text?
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