Question

This Question: 1 pt 7 of 15 (0 complete) This Quiz: 15 pts possible The International Monetary Fund's World Economic Outlook database provides the data given in the table for India in 2004, 2005, and 2006 囲Click the icon to vew the table. The numbers in the table are consistent with O A. O B. O C. O D. increases in long-run and short-run aggregate supply and even larger decreases in aggregate demand decreases in long-run and short-run aggregate supply and even greater decreases in aggregate demand. increases in long-run and short-run aggregate supply and even greater increases in aggregate demand increases in short-run aggregate supply and increases in aggregate demand, but the increases in aggregate demand are smaller than the increases in short-run aggregate supply Data Table 2004 2005 Real GDP growth rate Inflation 8.3 4.7 2006 7.3 4.6 4.2 Print Done Click to select your answer.

Answer 1

Ans. d
Short run aggregate supply increases because real GDP growth rate is positive.
Aggregate demand is increasing because price level is rising i.e inflation is positive.
However, inflation is less than real GDP growth rate.