In a Short- Run Macroeconomic Equilibrium, Real GDP Exceeds Potential

question 128

Multiple Choice

In a short- run macroeconomic equilibrium, real GDP exceeds potential GDP. If aggregate demand does not change, then the

• A)short- run aggregate supply curve will shift rightward as the money wage rate falls.
• B)long- run aggregate supply curve will shift leftward as the money wage rate falls.
• C)short- run aggregate supply curve will shift leftward as the money wage rate rises.
• D)long- run aggregate supply curve will shift leftward as the money wage rate rises.

---

Definitions:

Dividend Revenue

Income earned from owning shares in a company, typically distributed from the company's earnings.

Trading Securities

Financial instruments such as stocks or bonds that are purchased by a company with the intention of selling them in the short term to realize quick profits.

Unrealized Loss

A loss that results from holding onto an asset that has decreased in price, but has not yet been sold or actualized through closure of the position.

Held-to-Maturity Securities

Debt securities that a firm has the positive intent and ability to hold until maturity.