Short-run macroeconomic equilibrium occurs when the quantity of real GDP demanded .
A) equals the quantity of real GDP supplied
B) does not equal full-employment GDP
C) equals full-employment GDP
D) equals potential GDP

Question

Quizplus · Accepted Answer

In short-run macroeconomic equilibrium, the quantity of real GDP demanded is equal to the quantity of real GDP supplied. This means that there is no excess demand or excess supply in the economy. However, it does not necessarily mean that the economy is producing at full employment or potential GDP.

Short-Run Macroeconomic Equilibrium Occurs When the Quantity of Real GDP