Which of the Following Statements Is True

question 3

Multiple Choice

Which of the following statements is true?

• A) If current Real GDP is greater than Natural Real GDP,the economy is in a recessionary gap.
• B) If current Real GDP is less than Natural Real GDP,the economy is in long-run equilibrium.
• C) Wages are flexible if the economy is self-regulating.
• D) Wages rise but prices remain constant in long-run equilibrium.
• E) All economists believe the economy is self-regulating.