Question

Suppose that during the past 3​ years, equilibrium real GDP in a country rose​ steadily, from ​$ billion to ​$ ​billion, but even though the position of its aggregate demand curve remained​ unchanged, its equilibrium price level steadily​ declined, from to . What could have accounted for these​ outcomes, and what is the term for the change in the price level experienced by this​ country? A. Economic growth without an increase in aggregate​ demand; secular deflation. B. Recession with​ inflation; stagflation. C. Economic growth with an increase in aggregate​ demand; secular deflation. D. Increase in aggregate demand without economic​ growth: disinflation.

Answer 1

A. Economic growth without an increase in aggregate demand; secular deflation.

Explanation:

THIS IS THE COMPLETE QUESTION;

✓What could have accounted for these​ outcomes?

The answer is "Economic growth without an increase in aggregate demand"

The logic is that Whenever there is increase in Aggregate demand, then there would be economic growth. And if the economy experience spare capacity, real GDP rises up,is recorded if there is a rise in Aggregate demand.

✓what is the term for the change in the price level experienced by this​ country?

The answer is secular deflation.

When there is mild consistent increase in Prices of goods/service for some periods of time, that long period is known as secular deflation period. This could be as a result of human conducts, production and distribution, unbalance on aspect of country money institution.

NOTE:

GDP is use to describe the growth rate as well as the economy of a state.

Aggregate demand is the total demand of all good/service that ha been produce in a particular period in an economy.