If aggregate demand is stable and there is economic growth, the economy will experience
A) secular degeneration.
B) secular deflation.
C) secular decline.
D) secular depreciation.

Question

Quizplus · Accepted Answer

Secular deflation can occur when economic growth is accompanied by stable aggregate demand, as the increased supply of goods and services may lead to a general decline in prices if demand does not grow at the same pace.

If Aggregate Demand Is Stable and There Is Economic Growth