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False, crowding in occurs when decreases in government spending lead to an increase in private spending.

Note that we (almost) often have inflation in all economies. Inflation just means that prices rises over time, something which is quite normal. Many countries operates with an inflation target of 2-2,5% per year, and it is only when actual inflation deviates substantially from this target that problem occurs. A high inflation rate (well above the target) together with high unemployment is known as stagflation.

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Q: Is it true that the occurrence of inflation and high unemployement at the same time is called crowding in?
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