Short- run macroeconomic equilibrium occurs when the quantity of real GDP demanded _ .
A) equals potential GDP
B) equals the quantity of real GDP supplied
C) does not equal full- employment GDP
D) equals full- employment GDP

Question

Quizplus · Accepted Answer

Short-run macroeconomic equilibrium occurs when the quantity of real GDP demanded equals the quantity of real GDP supplied. This is because in the short run, prices are sticky and do not adjust to changes in demand or supply, so the market clears at the quantity where demand equals supply. Options A, C, and D are not correct because they refer to the long-run concept of potential GDP and full-employment GDP, which are not necessarily relevant for short-run equilibrium.

Short- Run Macroeconomic Equilibrium Occurs When the Quantity of Real