In short-run equilibrium,it is always true that
A) quantity demanded of Real GDP = quantity supplied of Real GDP = Natural Real GDP.
B) quantity demanded of Real GDP quantity supplied of Real GDP.
C) quantity demanded of Real GDP = quantity supplied of Real GDP.
D) a and b
E) There is not enough information to answer the question.

Question

In short-run equilibrium,it is always true that
A) quantity demanded of Real GDP = quantity supplied of Real GDP = Natural Real GDP.
B) quantity demanded of Real GDP > quantity supplied of Real GDP.
C) quantity demanded of Real GDP = quantity supplied of Real GDP.
D) a and b
E) There is not enough information to answer the question.

Quizplus · Accepted Answer

In short-run equilibrium, quantity demanded of Real GDP equals quantity supplied of Real GDP. This means that there is no excess demand or excess supply of goods and services, and the economy is operating at the level of output where there is neither inflation nor recession. Natural Real GDP may not necessarily be the same as short-run equilibrium output.

In Short-Run Equilibrium,it Is Always True That