-In the above figure, at the point where AD equals SAS,
A) the unemployment rate is zero.
B) real GDP exceeds potential GDP.
C) the economy is in a recession.
D) potential GDP exceeds real GDP.

Question

-In the above figure, at the point where AD equals SAS,
A) the unemployment rate is zero. 
B) real GDP exceeds potential GDP. 
C) the economy is in a recession. 
D) potential GDP exceeds real GDP.

Quizplus · Accepted Answer

At the point where Aggregate Demand (AD) equals Short-Run Aggregate Supply (SAS), the economy is at its equilibrium level of output, which means real GDP is at its potential GDP.

-In the Above Figure, at the Point Where AD Equals