According to Friedman,in Which of the Following Situations Is the Economy

question 36

Multiple Choice

According to Friedman,in which of the following situations is the economy in long-run equilibrium?

• A) The average inflation rate over the past five years is 2 percent and the expected inflation rate is 2 percent.
• B) The expected economic growth rate is 3 percent and the actual inflation rate is 3 percent.
• C) The expected economic growth rate is 2 percent and the expected inflation rate is 2 percent.
• D) The expected inflation rate is 3 percent and the actual inflation rate is 3 percent.

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Definitions:

Maintenance Costs

Expenses incurred in keeping an asset in working condition or restoring it to working condition.

Factory Machine Usage

The extent to which manufacturing equipment is utilized during the production process, often impacting efficiency and costs.

Variable Costs

Expenditures that change in direct correlation with production levels or sales figures.

Rent

Rent is the payment made by a tenant to a landlord for the use of a property, equipment, or other assets for a specified period.