According to Historical Evidence, When Real GDP Is

Multiple Choice

According to historical evidence, when real GDP is

A) below potential GDP, the price level declines.
B) below potential GDP, the rate of inflation decreases.
C) above potential GDP, the rate of inflation declines.
D) equal to potential GDP, there will be no change in the price level.
E) equal to nominal GDP, there will be no change in the rate of inflation.