If Aggregate Demand Grows Only Slightly Faster Than Potential GDP

question 146

Multiple Choice

If aggregate demand grows only slightly faster than potential GDP, then the economy will
)

• A) experience economic growth with high inflation
• B) be at a business- cycle peak
• C) experience economic growth with low inflation
• D) experience recession

---

Definitions:

Health Practices

Behaviors and activities conducted to maintain or improve health, such as exercise, healthy eating, and regular medical check-ups.

Extrusion Reflex

A reflex in infants where they use their tongue to push out solids or foods they are not yet ready to swallow.

Solid Foods

Food items that are not liquid, introduced to infants' diets around 6 months of age to meet nutritional needs beyond breastfeeding or formula.