If the Growth Rate of Spending Increases from 3% to 5%,then

question 107

Multiple Choice

If the growth rate of spending increases from 3% to 5%,then:

• A) the inflation rate will rise 2%.
• B) the growth rate of real output will rise 2%.
• C) the aggregate demand curve will shift to the right.
• D) the slope of the aggregate demand curve will increase.

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