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- If prices are completely flexible
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Card 29 / 145: If prices are completely flexible, then an increase in spending growth will lead to an immediate
A)
decrease in real output growth without any change in inflation.
B)
decrease in inflation without any change in real output growth.
C)
increase in inflation without any change in real output growth.
D)
increase in real output growth without any change in inflation.
Answer:
C) increase in inflation without any change in real output growth.
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