If the economy is in short- run equilibrium, then
A)real GDP can be greater than, less than or equal to potential GDP.
B)real GDP equals potential GDP.
C)real GDP cannot be equal to potential GDP.
D)nominal GDP equals potential GDP.

Question

Quizplus · Accepted Answer

In short-run equilibrium, real GDP can be greater than, less than, or equal to potential GDP due to fluctuations in aggregate demand and supply.

If the Economy Is in Short- Run Equilibrium, Then