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

question 23

Multiple Choice

If the short-run macroeconomic equilibrium occurs with real GDP less than Y*,the economy is

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

---

Definitions:

Credible

Being believable or worthy of trust based on evidence or reasoning.

Central Route

A method of persuasion that involves deep thinking and the logical processing of information, leading to lasting attitude change.

Persuasion

The act of convincing others to change their mind or take a certain action through effective communication or argumentation.

Long Lasting

Refers to something that endures or persists over a long period of time without significant degradation or loss of quality.