Which School of Thought Believes That Real GDP Always Equals

question 294

Multiple Choice

Which school of thought believes that real GDP always equals potential GDP?

• A) only Keynesian
• B) only classical
• C) Monetarist
• D) both Keynesian and classical

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Definitions:

Borrowers' Money

Funds that individuals or entities borrow from lenders, which they are obligated to repay, often with interest, over time.

Other Peoples' Money

Refers to investing or spending money that belongs to others, typically implying a responsibility to manage those funds wisely.

Expected Return

The projected profit or loss from an investment over a given period.

Investment

The action of allocating resources, usually money, with the expectation of generating an income or profit.