A temporary decrease in spending decreases both inflation and real growth in the long run.

Name: A temporary decrease in spending decreases both inflation and real growth in the long run.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

A temporary decrease in spending can reduce inflation in the short term by decreasing demand, but it does not necessarily decrease real growth in the long run. In the long run, real growth is more influenced by factors like technological advancements, labor force growth, and capital investment.

A Temporary Decrease in Spending Decreases Both Inflation and Real