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:

Operational Change

Adjustments made to the day-to-day operations of an organization, aiming to improve efficiency or effectiveness.

Transformational Change

Change in which the organization moves to a radically different, and sometimes unknown, future state.

Radically Different

Drastically unlike or divergent from what is traditional, standard, or expected.

Unknown Future

A reference to situations or outcomes that are uncertain or unpredictable.