If the Short-Run Macroeconomic Equilibrium Occurs with Real GDP Greater

question 54

Multiple Choice

If the short-run macroeconomic equilibrium occurs with real GDP greater than potential output,the economy is

• A)at its full-employment level of output.
• B)experiencing a recessionary output gap.
• C)experiencing an inflationary output gap.
• D)threatened with a demand shock.
• E)operating at full capacity.

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Definitions:

Lullabies

Gentle songs sung to soothe children or babies to sleep.

Sensation

The process of sensing our environment through touch, taste, sight, sound, and smell, which information is then sent to our brains.

Attachment Parenting

A parenting philosophy that proposes methods aiming to promote the attachment of parent and infant not only by maximal parental empathy and responsiveness but also by continuous bodily closeness and touch.

Co-sleeping

The practice of parents and infants or young children sleeping in close proximity, either in the same bed or in the same room, to facilitate bonding and caregiving.