When Real and Potential GDP Are Equal

question 99

Multiple Choice

When real and potential GDP are equal,

• A)prices will stop changing.
• B)the rate of inflation will equal zero.
• C)the rate of inflation will fall.
• D)the rate of inflation will remain constant.
• E)the price level will decline.

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Definitions:

Amortization Period

The total time period over which a loan or mortgage is scheduled to be paid off, often through regular payments.

Compounded Quarterly

Interest on an investment or loan is calculated and added to the principal once every three months.

Monthly Payment

A specified amount paid every month, typically as part of a loan repayment plan.

Equivalent Cash Value

The cash amount equivalent to the value of a non-cash item, often used in contexts like insurance settlements or lottery winnings.