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      Question

      Which of the following statements is/are correct?

      1.An increase in GDP can be a result of an increase in demand for goods and services, which can contribute to demand-pull inflation. 2.A decline in aggregate demand can lead to stagflation by reducing economic growth. Select the correct answer using the code given below:
      A Only 1 Correct Answer Incorrect Answer
      B Only 2 Correct Answer Incorrect Answer
      C Both are correct Correct Answer Incorrect Answer
      D None of the above Correct Answer Incorrect Answer

      Solution

      Both are correct statements.

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