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:

Security

Measures or mechanisms that ensure the protection of data, resources, and systems from threats and unauthorized access.

Required Reserve Ratio

The fraction of deposits that banks are required by law to keep on hand as reserves, either in their vaults or at a central bank.

Create Money

The process by which the money supply of a country is increased, typically by the central bank issuing currency or through the banking system's lending activities.

Real Estate

Pertains to land and any permanent structures or improvements attached to it, such as buildings, houses, and other property types.