Over the last twenty years,real GDP in the Canadian economy has increased and there has been inflation.This indicates that
A)aggregate demand has increased while aggregate supply has been constant.
B)aggregate demand has been constant while aggregate supply has increased.
C)aggregate demand has increased more than aggregate supply.
D)aggregate demand has increased less than aggregate supply.

Question

Quizplus · Accepted Answer

Real GDP increasing alongside inflation signals that aggregate demand has increased more than aggregate supply. This could be a result of various factors such as increased consumer spending or government spending, leading to a higher demand for goods and services.

Over the Last Twenty Years,real GDP in the Canadian Economy