If $\Delta \pi = 0$ , the macroeconomy is:
A) in an expansion
B) in a recession
C) at its potential level of output
D) Not enough information is given.
E) None of these answers are correct.

Question

Quizplus · Accepted Answer

When $\Delta \pi = 0$, it indicates that there is no change in inflation, suggesting the economy is at its potential level of output, where aggregate demand equals aggregate supply.

If Δπ=0\Delta \pi = 0Δπ=0 , the Macroeconomy Is: A) in an Expansion B) in in an Expansion

If $\Delta \pi = 0$ , the Macroeconomy Is:
A) in an Expansion
B) in in an Expansion