Whenever the general level of prices rises because of continual increases in aggregate demand, we say that the economy is experiencing

A) supply-side inflation.
B) monetary stagflation.
C) demand-side inflation.
D) aggregate supply shock.

C

Economics

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Included among the Fed's primary goals to promote a well-functioning economy are

A) high employment, low inflation, and a high foreign-exchange value of the dollar. B) price stability, economic growth, and a high reserve ratio. C) low government budget deficits, interest rate stability, and no inflation. D) a low rate of unemployment, a low and stable inflation rate, and financial market stability.

Economics

The level of real GDP in the long run is called

A) potential GDP. B) short-run GDP. C) frictional GDP. D) low-capacity GDP.

Economics