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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Definitions:

Integrated Society

A society where individuals of different racial, ethnic, or social backgrounds live and interact together harmoniously.

Antebellum South

The period in the history of the southern United States from the late 18th century until the start of the American Civil War in 1861, characterized by its agrarian economy, reliance on slavery, and social hierarchy.

Social Structures

The complex framework of societal institutions (such as family, education, and economy) and the social practices that make up a society and organize and establish limits on people's behavior.

Diverge

To move or extend in different directions from a common point; to differ in opinion, character, or form.