Just wondering if anyone at this forum can correctly answer this question:
What is the result when the inflation rate (as measured by the consumer price index) increases at a rate greater than the increase in the gross domestic product?
Attempting to clarify, here: you're asking what's going on when price level and real output are both increasing, but inflation is increasing at a noticeably greater rate?
That'd be modeled as a rightward shift in the aggregate demand curve, with its intersection with the short run aggregate supply curve approaching the economy's long-run output potential (in the intermediate range, approaching the classical range).
The result would be significant demand-pull inflation along with a rather abrupt cessation of real GDP growth as the economy reached, and attempted to pass full employment/maximum long-run output levels.
Though if you meant nominal GDP when you just said Gross Domestic Product, yeah, that'd be negative real GDP growth along with some cost-push inflation, probably, which would cause stagflation.