-In the Figure Above, in the Short-Run Macroeconomic Equilibrium

question 98

Multiple Choice

-In the figure above, in the short-run macroeconomic equilibrium,

• A) real GDP is less than potential GDP.
• B) there is no structural unemployment.
• C) real GDP is greater than potential GDP.
• D) real GDP equals potential GDP.

---

Definitions:

Price Maker

A market participant that has the power to influence the price of a product or service by controlling its supply, its demand, or both.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers, leading to a market balance.

Marginal Revenue

The extra profit made by selling an extra unit of a product or service.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded, typically downward sloping from left to right.