In short-run equilibrium,the quantities supplied and demanded of Real GDP can be less than or greater than Natural Real GDP.

Question

Quizplus · Accepted Answer

In the short-run, the economy can be operating below or above its potential output, which is represented by the Natural Real GDP. Therefore, it is possible that the quantities of Real GDP supplied and demanded are less than or greater than the Natural Real GDP in short-run equilibrium.

In Short-Run Equilibrium,the Quantities Supplied and Demanded of Real GDP