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  1. Economic growth is usually coupled with
    1. Deflation
    2. Inflation
    3. Hyper inflation
    4. Stagflation
Correct Option: B

With increase in GDP, aggregate demand increases, because more production means people have more disposable income, which means more consumer spending. As a result, prices rise in response, and in conclusion because aggregate demand grows faster than long-term aggregate supply, economic growth will be coupled with inflation.



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