-In the figure above, in the short- run macroeconomic equilibrium,
A)there is no structural unemployment.
B)real GDP equals potential GDP.
C)real GDP is less than potential GDP.
D)real GDP is greater than potential GDP.

Question

-In the figure above, in the short- run macroeconomic equilibrium,
A)there is no structural unemployment. 
B)real GDP equals potential GDP. 
C)real GDP is less than potential GDP. 
D)real GDP is greater than potential GDP.

Quizplus · Accepted Answer

In the short-run macroeconomic equilibrium, real GDP can be less than potential GDP due to factors like insufficient demand or economic downturns.

-In the Figure Above, in the Short- Run Macroeconomic Equilibrium