During an economic boom, the rate of inflation
A) and the percentage deviation of real GDP from potential GDP are both increasing.
B) and the percentage deviation of real GDP from potential GDP are both decreasing.
C) is increasing, and the percentage deviation of real GDP from potential GDP is decreasing.
D) is decreasing, and the percentage deviation of real GDP from potential GDP is increasing.
E) is constant, and the percentage deviation of real GDP from potential GDP is increasing.
Correct Answer:
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