Final answer:
If real GDP equals natural real GDP, the economy is in equilibrium, as aggregate expenditures match the real GDP, indicating no inflation, recession, or deflation, but rather a balance with potential output.
Step-by-step explanation:
When the current state of the economy is such that real GDP is equal to natural real GDP, it can be concluded that the economy is in equilibrium. This occurs because the aggregate expenditures in the economy are equal to the real GDP, which is the measure of what is spent on the final sales of goods and services. In this state, neither inflation nor recession is necessarily occurring, and it does not imply deflation either. Instead, it suggests that the economy is operating at its potential output, without any evident macroeconomic imbalances.