In the Short Run, the Equilibrium Level of Real GDP

question 41

Multiple Choice

In the short run, the equilibrium level of real GDP

• A) is necessarily greater than potential GDP.
• B) is necessarily equal to potential GDP.
• C) is necessarily less than potential GDP.
• D) could be less than, equal to, or greater than potential GDP.

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Definitions:

Collateral

An asset pledged as security for the repayment of a loan, forfeitable in the event of a default.

Financing Statement

A document filed to give public notice that a creditor has a security interest in the debtor's collateral, used in securing transactions.

Attach

in legal terms, means to legally seize a person's property to secure or satisfy a court judgement.

Enforceable Security Interest

A legal claim or lien on collateral that gives a creditor the right to take possession of the property if the debtor defaults on obligations.