Respuesta :
An economy characterized by increasing real GDP low unemployment and increasing inflationary pressures This economy is in the expansion phase of a business cycle.
In a world of rising inflation, people will spend more money because they know the value of money will decline in the future. In the short term, this will lead to further increases in GDP and thus further price increases. Most inflation is caused by demand-pull inflation, where aggregate demand is growing faster than aggregate supply.
As a result, businesses will hire more workers to increase supply and reduce unemployment in the short term. Inflation is not neutral and does not promote rapid economic growth. Higher inflation will never lead to higher income levels in the medium to long term. That's the time frame they analyze. Low unemployment usually leads to high inflation, and high unemployment usually leads to low inflation and even deflation.
Learn more about Inflationary pressures here:-https://brainly.com/question/14307209
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