Demand-side inflation is normally accompanied by
a. falling real GDP, while supply-side inflation may be accompanied by rising real GDP.
b. falling real GDP; the same is true of supply-side inflation.
c. rising real GDP, while supply-side inflation may be accompanied by falling real GDP.
d. rising real GDP; the same is true of supply-side inflation.
c
You might also like to view...
In the long run, an increase in the quantity of money, other things remaining the same,
A) decreases the price level. B) increases real GDP. C) increases the price level. D) decreases real GDP. E) has no effect on the price level or real GDP.
Firms that face capacity constraints can increase output only up to the capacity, but no further. Therefore, firms
a. Should price to capacity as long as MR > MC b. Should price to capacity as long as MR = MC c. Should price to capacity as long as MR < MC d. Should not take capacity into consideration in pricing decisions