Part of the normal aftermath of a period of excessive aggregate demand is
A)improvement in the quality of life.
B)reflation.
C)real GDP growth.
D)stagflation.
E)All of the above.

Question

Quizplus · Accepted Answer

The normal aftermath of a period of excessive aggregate demand is stagflation, which refers to a situation where there is high inflation combined with low economic growth and high unemployment. None of the other options represent a typical aftermath of excessive aggregate demand.

Part of the Normal Aftermath of a Period of Excessive