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Explain the process by which deflation occurs

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Reference no: EM132092074

"The United States is planning to push Europe towards new and more aggressive efforts to boost aggregate demand given a renewed risk of deflation in the Eurozone" - Reuters, Sep 12, 2014

a) Explain the process by which deflation occurs

b) How might Europe boost its aggregate demand? Might the boost to aggregate demand create demand-pull inflation?

Reference no: EM132092074

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