Multiple Choice
In the basic model that includes the AD and LRAS curves only, an increase in aggregate demand:
A) increases the inflation rate and the growth rate.
B) increases the inflation rate, but not the growth rate.
C) decreases the inflation rate and increases the growth rate.
D) decreases the inflation rate, but not the growth rate.
Correct Answer:
Verified
Correct Answer:
Verified
Q19: If spending grows by 3%,real GDP growth
Q32: If spending grows by 2%,real GDP growth
Q67: The unemployment rate decreases during a recession.
Q85: If the actual rate of inflation turns
Q86: If spending growth is 6% and inflation
Q171: If a baker observes an increase in
Q177: An increase in spending growth causes a
Q191: According to the inflation parable discussed in
Q229: If an earthquake strikes, destroying a large
Q233: Historically, rainfall shocks in India correlate well