Which of the following statements is true?
A) If current Real GDP is greater than Natural Real GDP, the economy is in a recessionary gap.
B) If current Real GDP is less than Natural Real GDP, the economy is in long-run equilibrium.
C) Wages are flexible if the economy is self-regulating.
D) Wages rise but prices remain constant in long-run equilibrium.
E) All economists believe the economy is self-regulating.
C
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