Which of the following is true?
A) Potential GDP fluctuates around nominal GDP.
B) Nominal GDP fluctuates around real GDP.
C) Real GDP never equals potential GDP.
D) The Okun Gaps are much larger than the Lucas Wedge.
E) Real GDP fluctuates around potential GDP.
E
You might also like to view...
The situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction is known as adverse selection
Indicate whether the statement is true or false
During the sixteenth century, Spanish conquistadors like Hernando Cortes overwhelmed the Aztecs and other indigenous peoples in America by pillaging their cities, and taking their gold and silver. The gold and silver was sent back to Spain, causing its
money supply to increase tenfold. Assuming V remained stable and Q increased slightly, what do you think happened to prices in Spain during this period?