In the macroeconomic short run,
A) actual real GDP always equals potential GDP.
B) the unemployment rate is zero.
C) by definition, the economy is always moving away from full employment.
D) actual real GDP may be less than or more than potential GDP.

Question

Quizplus · Accepted Answer

In the macroeconomic short run, actual real GDP may be less than or more than potential GDP. This is due to various factors such as fluctuations in aggregate demand, changes in technology or resources, and political or environmental events that affect the economy. Therefore, the economy may experience periods of recession or growth, which may result in actual real GDP being different from potential GDP.

In the Macroeconomic Short Run