Dwarf Printing

What happens to the RGDP output if the country is experiencing inflation b/c they are printing more and more money (that they can’t back up)? This tends to happen in a lot of third world countries.

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a. never be run since they slow economic growth over the long run.
b. never be run since they crowd out investment in the short run.
c. be run on a temporary basis whenever the economy is below potential output.
d. be run on a permanent basis since they can always be financed by printing money.

a. never be run since they slow economic growth over the long run.
b. never be run since they crowd out investment in the short run.
c. be run on a temporary basis whenever the economy is below potential output.
d. be run on a permanent basis since they can always be financed by printing money.

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