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    Business
  3. Study Set
    Modern Principles of Economics
  4. Exam
    Exam 13: Business Fluctuations: Aggregate Demand and Supply
  5. Question
    If Nominal Spending Growth Is 5% and the Economy Is
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If Nominal Spending Growth Is 5% and the Economy Is

Question 314

Question 314

Multiple Choice

If nominal spending growth is 5% and the economy is in recession at a -1% real growth rate, what is the inflation rate?


A) -1/5%
B) 4%
C) 5%
D) 6%

Correct Answer:

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