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Potential GDP increased from 4.7 trillion to 16.6 trillion between 1970 and 2013 resulting in econom

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Potential GDP increased from 4.7 trillion to 16.6 trillion between 1970 and 2013 resulting in econom

Potential GDP increased from 4.7 trillion to 16.6 trillion between 1970 and 2013 resulting in economic growth. Also, during this time ________ occurred because ________.
A) inflation; aggregate demand decreased by more than potential GDP
B) stagflation; aggregate demand increased by more than potential GDP
C) deflation; aggregate demand increased by more than potential GDP
D) inflation; aggregate demand increased by more than potential GDP
E) inflation; aggregate demand increased by less than potential GDP

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Essential Foundations of Economics

Edition: 7^th

Authors: Bade, Parkin

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Start by doing what's necessary; then do what's possible; and suddenly you are doing the impossible.

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