If the economy is at macroeconomic equilibrium, then real GDP
A)might be equal to, greater than, or less than potential GDP
B)must be less than potential GDP.
C)must equal potential GDP.
D)must be great than potential GDP.
E)cannot be compared to potential GDP.

Question

Quizplus · Accepted Answer

In macroeconomic equilibrium, real GDP can be equal to, greater than, or less than potential GDP, depending on whether the economy is at full employment, in a recession, or in an expansion.

If the Economy Is at Macroeconomic Equilibrium, Then Real GDP