At a short-run macroeconomic equilibrium,real GDP is always equal to potential GDP.

Question

Quizplus · Accepted Answer

At a short-run macroeconomic equilibrium, real GDP can be either above or below potential GDP. This is because short-run equilibrium represents an economy's output level that can fluctuate due to changes in demand, investment, and government policies, among other factors. Only at the long-run macroeconomic equilibrium, real GDP is equal to potential GDP.

At a Short-Run Macroeconomic Equilibrium,real GDP Is Always Equal to Potential