If Real GDP Is Below Potential GDP

question 56

Multiple Choice

If real GDP is below potential GDP,

• A)long-run equilibrium will be achieved once the aggregate demand curve shifts to the right.
• B)the economy is in a short-run equilibrium.
• C)long-run equilibrium will be achieved once inflation has stopped declining.
• D)the economy is in a medium-run equilibrium.
• E)long-run equilibrium will be achieved once prices have stopped declining.

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Definitions:

Post-Closing Trial Balance

A list of all accounts and their balances after closing entries are made, used to check the balance of debits and credits.

Fees Earned

Income received from providing services, typically recorded when the service is rendered, not when the payment is received.

Supplies Expense

Expenditures related to consumable supplies used in the operating activities of a business during a specific period.

Dividends

Payments made by a corporation to its shareholder members. It's often quoted as the amount each share receives (dividends per share).