True or false? Regardless of the inflation rate, a country has a set potential growth rate in the long run. a. False. Th

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answerhappygod
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True or false? Regardless of the inflation rate, a country has a set potential growth rate in the long run. a. False. Th

Post by answerhappygod »

True or false? Regardless of the inflation rate, a country has a set potential growth rate in the long run.
a.
False. The long run potential growth rate always depends on low rates of inflation.
b.
True, but only sometimes. At very high rates of inflation, long run potential growth rate declines.
c.
False. When expected inflation is different from actual inflation, the potential growth rate suffers.
d.
True. The long run potential growth rate is determined by the factors of production, not prices.
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