If Spending Grows by 3% While Real Growth Is 1

question 65

Multiple Choice

If spending grows by 3% while real growth is 1% and velocity is stable,then prices will be _____ at a rate of _____ according to the aggregate demand curve.

• A) falling;3%
• B) falling;2%
• C) rising;3%
• D) rising;2%

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Definitions:

Government Workers

Employees who are employed in the public sector, working for government entities at various levels.

Businesses

Entities engaged in commercial, industrial, or professional activities, aiming to generate profits from the goods or services they offer.

Craft Union

Labor union whose members all have a particular skill or occupation.

Bargaining Power

The capacity of one party in a negotiation to influence the terms of an agreement or the balance of power between negotiating parties.