In the long run, real GDP is determined by:
A) low and stable inflation.
B) real forces in the economy such as investment, productivity, and technology.
C) very low rates of unemployment.
D) low tax rates.
E) low oil prices.

Question

Quizplus · Accepted Answer

Real GDP is determined by real forces in the economy such as investment, productivity, and technology. Low and stable inflation, very low rates of unemployment, low tax rates, and low oil prices can all have some impact on real GDP in the short run, but the long-run trend of real GDP is primarily determined by real economic factors.

In the Long Run, Real GDP Is Determined By