Consider an Economy Without Any Supply Shocks

Multiple Choice

Consider an economy without any supply shocks.If the expected inflation rate is 3% and the actual inflation rate is also 3% and has been 3% for several years,then it is probably true that

A) real GDP equals potential GDP.
B) real GDP is less than potential GDP.
C) real GDP is more than potential GDP.
D) we can deduce nothing about the level of GDP.
E) the economy cannot be in a short-run equilibrium.