gdp classical model?
GDP as predicted by the classical model is
a)lower than the actual level of GDP. c) higher than the actual level of GDP.
b)smoother and steadier than actual GDP. d) an accurate predictor of actual GDP.
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GDP classical model, the answer should be B. smoother and steadier than actual GDP. It is actually your potential GDP, or ur GDP trend, Actual GDP could be so volatile and Move above or below the trend. But ur trend is more closely a linear line.