In an economy where actual real GDP is always equal to the natural real GDP, inflation
A) settles down to zero percent.
B) is at the same rate as GDP growth.
C) is constant at a rate that can be low or high.
D) fluctuates around an average of zero percent.
C
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Answer the following questions briefly
(a) Is it possible for each nation to have BOP surpluses? Explain. (b) What is the "statistical anomaly" that imparts a bias to trade balances? (c) Is it correct to argue that deficit countries are harmed while surplus countries benefit by international free trade? (d) How is the balance of payments linked to national saving and investment?
A seller is willing to sell a product only if the seller receives a price that is at least as great as the
a. seller's producer surplus. b. seller's cost of production. c. seller's profit. d. average willingness to pay of buyers of the product.