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:

VALS Framework

A tool used to categorize consumers into eight distinct types based on their responses to a questionnaire, which assesses psychological traits that influence purchasing behavior.

Consumer Groups

Organizations or collectives formed to protect the interests of consumers by advocating for consumer rights and providing education on various issues.

Segmenting Variable

Characteristics of individuals or groups used to divide a market into segments for targeted marketing.

Pre-Qualified

The state of having been evaluated and deemed eligible for something, such as a loan or service, based on preliminary criteria.