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

Question

Quizplus · Accepted Answer

Short-run macroeconomic equilibrium occurs when the quantity of real GDP demanded equals the quantity of real GDP supplied, regardless of whether this level corresponds to full-employment or potential GDP.

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