An economic analysis of the short run is useful to explain
A) how deviations of real GDP from potential output can and do occur.
B) how deviations of nominal GDP from potential output can and do occur.
C) why the long-run aggregate supply curve is vertical.
D) how an economy's maximum output is determined.

Question

Quizplus · Accepted Answer

The short run analysis helps to explain the deviations between real GDP and potential output, which is important in understanding the current state of the economy and the factors that may be affecting it. It helps to identify the factors that affect output and provides insights into the factors that can be manipulated to improve economic performance.

An Economic Analysis of the Short Run Is Useful to Explain