What happens when economic growth occurs without a corresponding increase in aggregate demand?
A)Aggregate demand is stagnant.
B)there is no change in the price level.
C)the price level declines over time.
D)the price level increases over time

Question

Quizplus · Accepted Answer

When economic growth occurs without a corresponding increase in aggregate demand, it typically leads to a decline in the price level over time. This is because the supply of goods and services increases while demand remains unchanged, putting downward pressure on prices.

What Happens When Economic Growth Occurs Without a Corresponding Increase