When Robert Shiller asked a sample of the general public what they thought caused inflation, the most frequent answer he receiv
ed was "greed." Most economists would argue that inflation is caused by:_______ a. changes in aggregate supply.
b. changes in aggregate demand.
c. changes in both aggregate demand and aggregate supply.
d. firms' greed.
c. changes in both aggregate demand and aggregate supply.
Explanation:
Aggregate demand which is also known as domestic final demand (DFD) refers to the demand of services and final goods in a specific market. On the other hand, aggregate supply refers to the supply of that service or final good to a specific market. Hence, it is the difference in the aggregate demand and aggregate supply of a product or good or service in a specific market. When the supply is lower than the demand, it automatically leads to inflation. There the option that changes in both aggregate demand and aggregate supply is correct.
Answer:The Civil War in the United States began in 1861, after decades of simmering tensions between northern and southern states over slavery, states' rights and westward expansion.
