Figure 1-2

-Which of the following is a criterion by which Gordon judges the desirability of any given level of actual real GDP?
A)Actual real GDP is too low if it causes the unemployment rate to be higher than necessary.
B)Actual real GDP is too high if it strains a nation's ability to produce and puts upward pressure on the inflation rate.
C)Actual real GDP is at a desirable level if there is no tendency for inflation to accelerate or decelerate.
D)All of the above.

Question

Figure 1-2
 
-Which of the following is a criterion by which Gordon judges the desirability of any given level of actual real GDP?
A)Actual real GDP is too low if it causes the unemployment rate to be higher than necessary. 
B)Actual real GDP is too high if it strains a nation's ability to produce and puts upward pressure on the inflation rate. 
C)Actual real GDP is at a desirable level if there is no tendency for inflation to accelerate or decelerate. 
D)All of the above.

Quizplus · Accepted Answer

All three options listed are criteria by which Gordon judges the desirability of any given level of actual real GDP. Therefore, the best choice is D, "All of the above."

Figure 1-2 -Which of the Following Is a Criterion by Which Gordon