Which of the Following Statements Is True

question 3

Multiple Choice

Which of the following statements is true?

• A) If current Real GDP is greater than Natural Real GDP,the economy is in a recessionary gap.
• B) If current Real GDP is less than Natural Real GDP,the economy is in long-run equilibrium.
• C) Wages are flexible if the economy is self-regulating.
• D) Wages rise but prices remain constant in long-run equilibrium.
• E) All economists believe the economy is self-regulating.

---

Definitions:

Welfare Payments

Government-provided financial assistance to individuals or families in need, aimed at supporting their basic living expenses.

Relative Concept

An idea or principle that is understood in relation to something else or varies according to context.

Welfare Benefit Levels

The amount of financial aid provided by government programs to support individuals and families in need.

Poverty Income Threshold

A measurement used to determine the income level below which an individual or family is considered to be living in poverty, based on the size of the family and composition.