Aggregate Demand in India Increased in 2008

question 129

Multiple Choice

Aggregate demand in India increased in 2008. In addition, real GDP grew strongly and inflation approached 10 percent. The best explanation for this inflation is that

• A) potential GDP increased, but at a slower rate than aggregate demand.
• B) potential GDP decreased.
• C) there was a movement up along the aggregate demand curve in 2008.
• D) aggregate supply did not change.

---

Definitions:

Self-monitoring

The regulation and adjustment of one's behavior in response to social situations or external feedback.

Behavior Cues

External or internal signals that can indicate an individual's mood, attitude, or intentions, often studied in psychology and communication to understand and predict behavior.

Self-esteem

An individual’s subjective evaluation of their own worth, encompassing beliefs about oneself as well as emotional states.

Low Self-esteem

A condition where an individual holds a low regard for oneself, characterized by a lack of confidence and feeling unworthy or incapable.