The figure given below represents the equilibrium real GDP and price level in the aggregate demand and aggregate supply model. Figure 8.3 Refer to Figure 8.3.Potential GDP is greater than real GDP at all output levels:
A)above $300 billion.
B)between $300 billion and $400 billion.
C)above $400 billion.
D)below $300 billion.
E)above $500 billion.

Question

The figure given below represents the equilibrium real GDP and price level in the aggregate demand and aggregate supply model. Figure 8.3  Refer to Figure 8.3.Potential GDP is greater than real GDP at all output levels:
A)above $300 billion. 
B)between $300 billion and $400 billion. 
C)above $400 billion. 
D)below $300 billion. 
E)above $500 billion.

Quizplus · Accepted Answer

The Answer of The figure given below represents the equilibrium real GDP and price level in the aggregate demand and aggregate supply model. Figure 8.3  Refer to Figure 8.3.Potential GDP is greater than real GDP at all output levels:
A)above $300 billion. 
B)between $300 billion and $400 billion. 
C)above $400 billion. 
D)below $300 billion. 
E)above $500 billion.

The Figure Given Below Represents the Equilibrium Real GDP and Price