If Aggregate Demand Grows Only Slightly Faster Than Potential GDP

question 314

Multiple Choice

If aggregate demand grows only slightly faster than potential GDP, then the economy will

• A) experience economic growth with high inflation.
• B) experience recession.
• C) experience economic growth with low inflation.
• D) be at a business-cycle peak.

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Definitions:

Eversion

The movement of turning the sole of the foot outward, away from the midline of the body.

Protraction

Moving a body part anteriorly.

Depression

A mental health disorder characterized by persistently low mood, lack of motivation, and diminished interest or pleasure in activities.