The Sequence That Brings an Economy Back Toward Equilibrium from a Boom

question 2

Multiple Choice

The sequence that brings an economy back toward equilibrium from a boom includes

• A) an increase in inflation that works its way into expectations.
• B) higher inflationary expectations that reduce aggregate demand.
• C) actual GDP converging to its potential even before inflation subsides completely.
• D) all of the above.
• E) none of the above.

---

Definitions:

Anchor Stores

Large, prominent retailers within a shopping mall or center that attract a significant number of shoppers, serving as a foundational attraction for the center.

Regional Shopping Center

A large retail complex that provides a wide range of goods and services, typically anchored by one or more department stores and designed to serve a broad geographical area.

Nordstrom

A high-end department store chain known for its customer service and product selection.

Saks Fifth Avenue

A high-end American department store chain known for offering luxury goods and designer apparel.