In the short-run, real GDP can be greater than or less than potential GDP because in the short run the money wage rate is fixed.

Name: In the short-run, real GDP can be greater than or less than potential GDP because in the short run the money wage rate is fixed.
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In the short run, real GDP can deviate from potential GDP because prices and wages do not adjust immediately to changes in demand or supply, allowing for temporary periods where the economy can operate above or below its long-term potential.

In the Short-Run, Real GDP Can Be Greater Than or Less