If the Economy Is in Short Run Equilibrium Then

question 93

Multiple Choice

If the economy is in short run equilibrium then

• A) nominal GDP equals potential GDP.
• B) real GDP equals potential GDP.
• C) real GDP can be greater than, less than, or equal to potential GDP.
• D) real GDP cannot be equal to potential GDP.

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Definitions:

Queuing

The process of waiting in line as a means of organizing people or objects into a sequence, particularly for service or purchasing.

Waiting in Line

The act of standing or queueing in a sequence for services or goods, usually in a sequential order.

Price Rationing

A method of allocating goods among buyers by charging a high enough price to decrease demand to match the supply.

Equilibrium Price

The price at which the quantity of a good demanded equals the quantity supplied, leading to market balance.