Positive Demand Shocks Have a Tendency to ________ Real GDP

question 72

Multiple Choice

Positive demand shocks have a tendency to ________ real GDP relative to potential GDP and ________ the inflation rate.

• A) increase; increase
• B) increase; decrease
• C) decrease; increase
• D) decrease; decrease

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Definitions:

Shared

A term referring to something that is used or belongs to more than one person or entity.

Cladistic Analysis

A method of analyzing the evolutionary relationships between groups of organisms by classifying them based on common ancestry.

Outgroup

In cladistics, a taxon that represents an approximation of the ancestral condition; the outgroup is related to the ingroup (the members of the group under study) but separated from the ingroup lineage before they diversified.

Diverges

Moves or extends in different directions from a common point, or becomes fundamentally different in character or form.