"Natural" real GDP is defined as the total output
A)at business cycle peaks.
B)at business cycle troughs.
C)that causes an inflation rate of zero.
D)that causes the inflation rate to remain constant.
E)produced when all of our resources are being used to their maximum capacity.

Question

Quizplus · Accepted Answer

Natural real GDP is the level of output where the economy is at full employment, and the inflation rate remains constant, indicating no upward or downward pressure on prices.

"Natural" Real GDP Is Defined as the Total Output