Question

Which of the following is most likely to be associated with positive economic growth? a. a...

Which of the following is most likely to be associated with positive economic growth?

a.

a supply shock.

b.

demand-pull inflation.

c.

a negative GDP gap.

d.

cost-push inflation.

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Answer #1

Option b

It is referred to as demand outpacing the supply which happens when the economy is at full capacity, economy grows at a faster rate accompanied by falling unemployment rate

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