In the absence of any policy intervention, when $\vec { C }$ falls the result will be:
A) higher inflation and lower real growth.
B) lower inflation and real growth.
C) higher inflation and real growth.
D) lower inflation and higher real growth.

Question

Quizplus · Accepted Answer

When consumption ($\vec { C }$) falls, it leads to a decrease in aggregate demand, which typically results in lower inflation and lower real economic growth, assuming no policy intervention to counteract these effects.

In the Absence of Any Policy Intervention, When C⃗\vec { C }C

In the Absence of Any Policy Intervention, When $\vec { C }$