2) The natural level of real GDP is that level of real GDP at which the price le

Question

2) The natural level of real GDP is that level of

real GDP at which the price level will remain constant

nominal GDP at which the price level will remain constant

real GDP at which there is no tendency for inflation to accelerate or decelerate

Both A and C are correct

please be accurate

real GDP at which the price level will remain constant

nominal GDP at which the price level will remain constant

real GDP at which there is no tendency for inflation to accelerate or decelerate

Both A and C are correct

please be accurate

Explanation / Answer

At the natural level of real GDP, the economy produces its maximum possible output (called Potential Output/Potential GDP) using all its capital, technology and other available resources. At this natural level, Price level is stable (Unchanged) and inflation does not increase or decrease.

Both options (A) & (C) are correct.

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