Given the Path of Natural Real GDP Growth,economists Prefer an Economy

question 35

Multiple Choice

Given the path of natural real GDP growth,economists prefer an economy such as ________,in which the real GDP gaps are ________.

• A)Stabilia's,minimized
• B)Stabilia's,maximized
• C)Volatilia's,minimized
• D)Volatilia's,maximized

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Definitions:

Percentage Fall

A measure that indicates the decrease in a value or quantity, expressed as a percentage of its previous value.

Full Employment

A situation in which all available labor resources are being used in the most economically efficient way.

Quantity Theory of Money

A theory stating that the general price level of goods and services is directly proportional to the amount of money in circulation.

M Rises

Refers to an increase in a variable or quantity denoted as "M," which could contextually mean a variety of things depending on the field of study.