If the Short- Run Macroeconomic Equilibrium Occurs with Real GDP

question 82

Multiple Choice

If the short- run macroeconomic equilibrium occurs with real GDP greater than potential output, the economy is

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

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