Suppose You Observe an Increase in Both GDP and Prices

question 32

Multiple Choice

Suppose you observe an increase in both GDP and prices. If you hold to the long-run perspective of no trade-offs between inflation and unemployment, you can explain your observation

• A) entirely in terms of a downward shift in aggregate demand.
• B) entirely in terms of an upward shift in aggregate demand.
• C) entirely in terms of a reduction in potential GDP.
• D) entirely in terms of an increase in potential GDP.
• E) only in terms of changes in both aggregate demand and potential GDP.

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Definitions:

Male Fitness

The state of health and well-being specifically related to male individuals, often focusing on physical strength, endurance, and overall physical health.

Secondary Socialization

The process of learning appropriate behavior within smaller sections of the larger society, occurring outside the family through institutions like schools and media.

Specific Groups

Groups identified or formed based on particular criteria or characteristics such as interests, identities, or goals.

Birth Cohort

All of the people who are born during a given period of time and therefore experience historical events at the same points in their lives.