If there is pull inflation (demand-pull inflation) and aggregate supply is assumed to be constant, there would be an increase in the quantity demanded for real GDP. Therefore, the correct answer is:
an increase.
Multiple choice question.
no change
a decrease
an increase
rises and falls
1 answer
If there is pull inflation (demand-pull inflation) and aggregate supply is assumed to be constant, there would be an increase in the quantity demanded for real GDP. Therefore, the correct answer is:
an increase.