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.
Answer:C
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.