Author Question: In an economy with persistent inflation, a. real GDP will grow faster than nominal GDP. b. nominal ... (Read 74 times)

darbym82 · **on:** Jun 30, 2018

In an economy with persistent inflation,
a. real GDP will grow faster than nominal GDP.
b. nominal GDP will grow faster than real GDP.
c. nominal and real GDP will grow at the same rate.
d. nominal and real GDP will both fall.

Question 2

A cut in government spending, a decrease in income abroad, an increase in taxes, or an expectation that future consumer income will fall will all cause aggregate:
a. demand to shift rightward.
b. demand to shift leftward.
c. supply to shift rightward.
d. supply to shift leftward.
e. supply and aggregate demand to both shift equally inward.