If Actual Real GDP (Q)is Permanently Greater Than Natural Real

question 36

Multiple Choice

If actual real GDP (Q) is permanently greater than natural real GDP (YN) ,

• A)the economy is off its short-run Phillips Curve.
• B)the actual rate of inflation must be less than the expected rate.
• C)the economy is on its long-run Phillips Curve.
• D)there must be a continuous acceleration of inflation.

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Definitions:

Sleep-Waking Cycles

The biological rhythm of sleep and wakefulness, typically operating on a 24-hour cycle.

Startle Reflex

An automatic response to sudden, unexpected stimuli, such as loud noises, that is designed to protect the body from potential threats.

Fear

A disagreeable feeling resulting from the conviction that a person or entity poses a risk, may inflict harm, or constitutes a menace.

Emotional Expression

The way in which a person outwardly shows or communicates their emotions, through facial expressions, body language, or verbal communication.