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:

Explicit memory

The conscious, intentional recollection of factual information, previous experiences, and concepts.

Reading comprehension

The ability to understand, interpret, and derive meaning from written text.

Working memory

A cognitive system responsible for temporarily holding information available for processing, crucial for reasoning and the guidance of decision-making and behavior.

Associative ability

Describes the capacity to learn and understand how different concepts, ideas, or symbols are connected, facilitating learning and memory processes.