Respuesta :
Answer:
inflation will increase
Explanation:
in this case, the real GDP was higher than the potential GDP. The potential GDP was achieved when the growth rate was 2.5%, a 7.5% growth rate means that the economy grew more that it can sustain. As a result of this, inflation will rise since aggregate demand exceeds aggregate supply.
Inflation should be increased.
The following information should be considered:
- When the real GDP is more than the potential GDP.
- So, the Potential GDP should be accomplished at the time when the growth rate is 2.5%.
- The 7.5% growth rate represents the economy grown more.
- Due to this, the inflation should increased as the aggregate demand should more than the aggregate supply.
Therefore we can conclude that Inflation should be increased.
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