Might boost to aggregate demand create demand-pull inflation

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The United States is planning to push Europe toward new and more aggressive efforts to boost aggregate demand given a renewed risk of deflation in the eruo zone. (Source Reuters September 12, 2014)

Explain the process by which deflation occurs.

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

Reference no: EM131173872

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