If nominal GDP growth has accelerated permanently (assuming Y(N) ,is constant) ,
A) real GDP must keep growing until the growth rate of nominal GDP equals the inflation rate.
B) real GDP will increase by the same percentage that nominal GDP increased.
C) real GDP must keep growing until the rate of growth of real GDP equals the inflation rate.
D) the level of real GDP will be permanently increased.
Correct Answer:
Verified
Q65: Figure 8-6 Q66: The SP curve shifts downward when Q67: If the inflation rate is 10% and Q68: The short-run equilibrium of inflation and real Q69: The economy is in long-run equilibrium Q71: The growth of nominal GDP Q72: Along the SP curve with expected inflation Q73: A rise in expected inflation causes Q74: Figure 8-6 Q75: The slope of the SP curve depends
A)the average
A)at any
A)can be broken
A)the SP
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