Aggregate Demand in India Increased in 2008

question 204

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

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Definitions:

Customer Needs

The specific desires, expectations, or requirements that a customer has regarding a product or service, which can influence their buying behavior.

Competitive Strategy

Tactics and plans that a business uses to establish a unique position, gain competitive advantage, and achieve superior profitability.

Products and Services

Goods and assistance provided by businesses to satisfy the needs and wants of customers.

Implied Uncertainty

The uncertainty inherently present in expectations or forecasts, often due to incomplete information or unpredictable changes in external factors.