Multiple Choice
According to the aggregate demand curve, there is a(n)
A) positive relationship between inflation and real GDP.
B) inverse relationship between the price level and the percentage deviation of real GDP from potential GDP.
C) positive relationship between inflation and the percentage deviation of real GDP from potential GDP.
D) positive relationship between the price level and the percentage deviation of real GDP from potential GDP.
E) inverse relationship between inflation and the percentage deviation of real GDP from potential GDP.
Correct Answer:
Verified
Correct Answer:
Verified
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