Answer to Question #338163 in Macroeconomics for Yaya

Question

Expansionary demand management policy measures tend to …

a. 

increase the real GDP, but reduce inflation.

a. increase the real GDP, but reduce inflation.

b. 

increase both inflation and the level of unemployment.

b. increase both inflation and the level of unemployment.

c. 

increase the production cost, which will decrease total production.

c. increase the production cost, which will decrease total production.

d. 

increase both the real GDP and inflation.

Answer 1

c. 

increase the production cost, which will decrease total production.