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:

Quality Of Work

The measure of excellence or state of being free from defects, deficiencies, and significant variations in a product or service.

Good Follower

A person who supports and is guided by another person or by a group, showing commitment and adaptability.

Productivity Rate

A measure of the efficiency of production or the amount of output generated per unit of input.

Orders Passively

The act of accepting instructions or commands without question or resistance.