If Real GDP Is Below Potential GDP

question 56

Multiple Choice

If real GDP is below potential GDP,

• A)long-run equilibrium will be achieved once the aggregate demand curve shifts to the right.
• B)the economy is in a short-run equilibrium.
• C)long-run equilibrium will be achieved once inflation has stopped declining.
• D)the economy is in a medium-run equilibrium.
• E)long-run equilibrium will be achieved once prices have stopped declining.

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