Excessively Rapid Growth In Aggregate Demand Which Pushes Y Above Its Natural Level O A Causes A Sustained Increase I 1 (23.04 KiB) Viewed 28 times
Excessively Rapid Growth In Aggregate Demand Which Pushes Y Above Its Natural Level O A Causes A Sustained Increase I 2 (13.34 KiB) Viewed 28 times
Excessively rapid growth in aggregate demand, which pushes Y above its natural level, O A. causes a sustained increase in output without any effect on prices. O B.causes the demand for labor to rise, pushing up wages, which then cause prices to rise. O C. causes prices to rise (inflation) almost immediately. O D. causes rising prices, which then cause wages to rise as well.
"Automatic stabilizers O A are timely increases or decreases in interest rates to offset fluctuations in AD. O B. are changes in taxes enacted by Congress in time to offset AD fluctuations O c. are changes in government purchases enacted by Congress in time to offset AD fluctuations. OD. are changes in taxes or transfer payments that offset fluctuations in AD without policymakers taking any deliberate actions
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