According to the quantity theory of money, if aggregate spending in an economy increases by 3%...
According to the quantity theory of money, if aggregate spending in an economy increases by 3% and real GDP increases by 1%, we also know that there is:
Group of answer choices
a. a positive supply shock.
b.a recession.
c. inflation
d. a war.
Homework Answers
Answer)
According to the quantity theory of money, if aggregate spending in an economy increases by 3% and real GDP increases by 1%, we also know that there is:
c. inflation
So, option C is correct.
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According to the quantity theory of money, if aggregate spending
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