If New Zealand Is Operating at Potential GDP, Which of the Following

question 49

Multiple Choice

If New Zealand is operating at potential GDP, which of the following is true?
i) New Zealand only has frictional and structural unemployment.
ii) There is no inflation in New Zealand.
iii) New Zealand has positive net exports.

• A)i and ii
• B)i only
• C)i and iii
• D)i, ii and iii
• E)ii only

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Definitions:

Debt Transactions

Financial operations involving the borrowing and lending of funds, where repayment is required, often with interest.

Conventional

Pertaining to widely accepted standards or methods.

Use

The act of employing something for a particular purpose.

Mortgages

Loans used to purchase a property, where the property itself serves as security against the loan.