Natural real GDP is the rate of output produced by the amount of labor hired when
A)inflation is zero.
B)inflation is expected to be zero.
C)inflation is both zero and is expected to be zero.
D)being correctly anticipated.

Question

Quizplus · Accepted Answer

Natural real GDP refers to the level of output where the economy is at full employment, and all resources are used efficiently. It doesn't directly relate to the current or expected rate of inflation but rather to the economy's output when all available labor is being utilized effectively, and expectations about the future (including inflation) are correctly anticipated.

Natural Real GDP Is the Rate of Output Produced by the Amount