Rising output coupled with falling prices is called stagflation Select one: a. True O b. False An increase in costs will: Select one: O a. Reduce the natural rate of unemployment O b. Increase the productivity of employees c. Shift aggregate supply d. Shift aggregate demand Why low rate inflation is considered necessary for economic grwoth? Select one: O a. It act as an incentive to boost in supply in the economy O b. It does not affect the purchasing power of wages O c. It affects only the rich and not the poor O d. It indicates that the currency is in continuous demand by the people Who said there is would always be adequate amount of expenditure on goods so that there is full employment Select one: O a. J.B. Say b. J.M. Keynes c. Adam smith O d. None What does the inflation imply? Select one: a. Rise in money supply. b. Rise in budget deficit c. Rise in prices of consumer goods. O d. Rise in general price index