-In the figure above, in the short- run macroeconomic equilibrium,
A) real GDP equals potential GDP.
B) real GDP is less than potential GDP.
C) there is no structural unemployment.
D) real GDP is greater than potential GDP.

Question

-In the figure above, in the short- run macroeconomic equilibrium,
A) real GDP equals potential GDP. 
B) real GDP is less than potential GDP. 
C) there is no structural unemployment. 
D) real GDP is greater than potential GDP.

Quizplus · Accepted Answer

In the short-run macroeconomic equilibrium, real GDP can be less than potential GDP due to factors like insufficient demand or economic downturns.

-In the Figure Above, in the Short- Run Macroeconomic Equilibrium