If the Economy Is Producing at Potential GDP

question 75

Multiple Choice

If the economy is producing at potential GDP

• A)unemployment is at its natural rate.
• B)the Phillips curve must be positively sloped.
• C)the short-run aggregate supply curve must be vertical.
• D)inflation in the economy is at its natural rate.

---

Definitions:

Actual Level

Represents the real, measured level of activity, production, or performance, as opposed to estimated or planned levels.

Revenue Variance

Revenue variance is the difference between actual revenue and budgeted or forecasted revenue, indicating the effectiveness of a company’s sales strategies.

Units Sold

The quantity of products or services sold by a company during a specific period of time.

Selling Price

The amount of money charged for a product or service, or the sum of the value that customers exchange for the benefits of having or using the product or service.