If Aggregate Demand Grows Only Slightly Faster Than Potential GDP

question 41

Multiple Choice

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

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

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Definitions:

Fish

Aquatic animals that are typically harvested either from the wild (fishing) or from farms (aquaculture) for food, recreational, or commercial purposes.

Open Ocean

The vast, deep, and relatively unexplored parts of the sea, far from land and typically beyond national jurisdiction.

Property Rights

The legal rights to use, transfer, or sell property, whether tangible or intangible, recognized and protected by law.

Higher User Costs

Increased charges or expenses borne by users for accessing or utilizing services, goods, or facilities.