If the Fluctuations in the Economy's Real Growth Rate from Year

question 42

Multiple Choice

If the fluctuations in the economy's real growth rate from year to year are caused primarily by variations in the rate at which aggregate demand increases, then data would show

• A)a cyclical relationship between inflation and unemployment.
• B)a direct relationship between inflation and unemployment.
• C)an inverse relationship between inflation and unemployment.
• D)no relationship between inflation and unemployment.