2.3.1.2f - Causes of deflation: • falling aggregate demand (AD) • increase in aggregate supply

Causes of deflation:; falling aggregate demand (AD); increase in aggregate supply (AS); fall in the money supply.

Use f - causes of deflation: • falling aggregate demand (ad) • increase in aggregate supply to connect the rule to the data and decision in the question.

This matters because f - causes of deflation: • falling aggregate demand (ad) • increase in aggregate supply determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply f - causes of deflation: • falling aggregate demand (ad) • increase in aggregate supply to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: f - Causes of deflation: • falling aggregate demand (AD) • increase in aggregate supply is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.