Other things equal, an increase in aggregate spending tends to be associated with:
A)cost-push inflation.
B)an economic depression.
C)a lower level of equilibrium real GDP.
D)demand-pull inflation.
E)an increase in the quality of goods and services produced.

Question

Quizplus · Accepted Answer

An increase in aggregate spending leads to increased demand for goods and services, which often leads to demand-pull inflation.

Other Things Equal, an Increase in Aggregate Spending Tends to Be