If Prices Are Completely Flexible,then an Increase in Spending Growth

question 200

Multiple Choice

If prices are completely flexible,then an increase in spending growth will lead to an immediate:

• A) increase in real output growth without any change in inflation.
• B) decrease in real output growth without any change in inflation.
• C) decrease in inflation without any change in real output growth.
• D) increase in inflation without any change in real output growth.

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Definitions:

Accounts Payable Period

The average time it takes for a business to pay off its suppliers after receiving inventory or services.