In an Economy Where Actual Real GDP Is Always Equal

question 69

Multiple Choice

In an economy where actual real GDP is always equal to the natural real GDP,inflation

• A)settles down to zero percent.
• B)is at the same rate as GDP growth.
• C)is constant at a rate that can be low or high.
• D)fluctuates around an average of zero percent.

---

Definitions:

Company

A legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—enterprise.

Expected Return

The anticipated gain or loss that an investor predicts from an investment over a period, based on historical averages or estimated models.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange-traded funds (ETFs).