The process of curing inflation by reducing money supply is called _______.

cost-push Inflation

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demand-pull inflation

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disinflation

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relfation

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Solution

The correct option is C disinflation
Inflation is an economic situation where the general price level in the economy for all the relevant goods has a constant appreciable rise over a period of time. Therefore, disinflation refers to the process of curing inflation by reducing the money supply in the economy.

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In the case of cost-push inflation, the supply curve shifts

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