-If the actual real GDP is less than potential real GDP,the economy is
A) not in macroeconomic equilibrium.
B) at full employment.
C) in an above full-employment equilibrium.
D) in a below full-employment equilibrium.

Question

-If the actual real GDP is less than potential real GDP,the economy is
A) not in macroeconomic equilibrium. 
B) at full employment. 
C) in an above full-employment equilibrium. 
D) in a below full-employment equilibrium.

Quizplus · Accepted Answer

When actual real GDP is less than potential real GDP, it indicates that the economy is operating below its full capacity, leading to a below full-employment equilibrium.

-If the Actual Real GDP Is Less Than Potential Real