Beginning in Equilibrium in an AD and SRAS Model, an Increase

question 66

Multiple Choice

Beginning in equilibrium in an AD and SRAS model, an increase in consumption growth will initially cause

• A) inflation and real growth to increase.
• B) inflation to increase and real growth to decrease.
• C) inflation to increase and real growth to remain unchanged.
• D) inflation and real growth to remain unchanged.

---

Definitions:

Teleconferencing

A method of communication whereby participants in different locations are able to have a meeting through telephone or video links.

Economic Development

The process by which a nation improves the economic, political, and social well-being of its people.

Blue-Collar Workers

Employees who perform manual labor, often in manufacturing, construction, and maintenance fields, typically requiring physical skill and effort.

Wealth Distribution

Wealth Distribution is the statistical distribution of assets among a population, often a subject of economic studies regarding inequality and economic health.