If the data show that periods of high economic growth rate accompanied by high inflation rates, then changes in aggregate demand are the primary source of economic fluctuations.

Question

Quizplus · Accepted Answer

If high economic growth is accompanied by high inflation, it suggests that aggregate demand is outstripping the economy's capacity to supply goods and services, leading to price increases, and other economic problems. As a result, changes in aggregate demand are likely the primary source of economic fluctuations.

If the Data Show That Periods of High Economic Growth