In the basic New Keynesian​ model, if anticipated future inflation decreases and the central bank does not change its interest rate target in​ response, then         A. output rises and inflation rises.   B. output stays the same and inflation falls.

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Economic Growth

It means the rise in the manufacturing levels of a country’s products/services over a while. It is calculated in terms of the real income of the people of the country. When the production of products/services begins, the manufacturers will hire employees, which in turn raises the income of the people and it will also raise the buying power, this eventually leads to the circulation of money that directly helps in the increase in the Gross Domestic Product (GDP). Thus, GDP is calculated by economists to calculate the growth in the country.