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

Question

Quizplus · Accepted Answer

The increase in real GDP and inflation indicate that aggregate demand has increased more than aggregate supply. This is because an increase in real GDP reflects an increase in output, which could be a result of an increase in demand for goods and services. Similarly, when there is inflation, it means that there is more demand for goods and services than what is available, leading to an increase in prices. Therefore, the correct choice is C, which indicates an increase in aggregate demand.

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