What Will Be the Result in a Growing Economy If

question 249

Multiple Choice

What will be the result in a growing economy if increases in aggregate demand outpace rightward shifts of the long-run aggregate supply curve?

• A) secular deflation
• B) inflation accompanied by declines in real GDP
• C) inflation accompanied by increases in real GDP
• D) a decline in consumption spending

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Definitions:

Adler

Refers to Alfred Adler, an Austrian medical doctor and psychotherapist, known for his contributions to psychology with the theory of individual psychology.

Behaviorists

Psychologists who study and theorize about human and animal behavior through observable actions, often dismissing internal processes.

Fixated

An obsessive interest or attachment to someone or something.

Aggression

Behavior intended to harm or intimidate others.