If Spending Grows by 2%,real GDP Growth Is 5%,and Velocity

question 32

Multiple Choice

If spending grows by 2%,real GDP growth is 5%,and velocity is stable,then prices will be _____ at a rate of _____ according to the aggregate demand curve.

• A) falling;3%
• B) falling;2%
• C) rising;3%
• D) rising;2%

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Definitions:

Preexisting Duty

An obligation that a party is already legally bound to, which cannot serve as consideration for a new contract.

Forbearance to Sue

An agreement or arrangement where a party chooses not to pursue legal action in exchange for some form of compensation or under specific conditions.

Legal Claim

A formal assertion by a party seeking judicial relief due to another party's action or failure to act in accordance with the law.

Promisor

An individual or entity who makes a promise or agreement to perform a specified act or service for a promisee.