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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