If Spending Growth Is 6% and Inflation Is Also 6%,this

question 86

Multiple Choice

If spending growth is 6% and inflation is also 6%,this means that:

• A) real GDP did not increase.
• B) economic growth was 12%.
• C) more money is chasing an increased number of goods.
• D) a positive supply shock occurred.

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Definitions:

Environment

The surrounding conditions or settings in which a person, plant, or animal lives or operates, encompassing both natural and man-made influences.

Shape Constancy

The tendency to perceive objects as being the same shape even though the shapes of their images on the retina may differ when the objects are viewed from different positions.

Perceptual Constancy

The tendency to perceive objects as the same even though the sensations produced by them may differ when, for example, they differ in position or distance.

Rectangle

A four-sided polygon with opposite sides being equal and parallel, and all interior angles being right angles.