In which of the following sets of circumstances can we confidently expect inflation?
A. Aggregate supply and aggregate demand both increase.
B. Aggregate supply and aggregate demand both decrease.
C. Aggregate supply decreases and aggregate demand increases.
D. Aggregate supply increases and aggregate demand decreases.
C. Aggregate supply decreases and aggregate demand increases.
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In the extended version of the circular flow model, money flows from
a. households to firms as payments for resources b. households to foreign economies as payments for exports c. government to firms as tax payments d. foreign economies to firms as payments for imports e. firms to households as payments for resources
Economic growth is most likely to solve the problems of
a. environmental pollution. b. world poverty. c. emotional stress. d. social alienation.