Actual GDP Will Fall Short of Potential GDP in the Short

question 38

Multiple Choice

Actual GDP will fall short of potential GDP in the short run if

• A) the aggregate supply schedule falls short of actual GDP at the full employment level.
• B) existing prices correspond to a level of aggregate demand in excess of potential GDP.
• C) existing prices correspond to a level of aggregate demand below potential GDP.
• D) the existing capital stock produces aggregate demand that is smaller than the corresponding aggregate supply.
• E) none of the above.

---

Definitions:

IFB

An Invitation for Bid, a solicitation issued by organizations when they require contractors to bid on supplying goods or services.

Internal Proposals

internal proposals refer to suggestions or plans put forward within an organization, aimed at addressing internal issues or proposing new initiatives for improvement.

External Proposals

Proposals submitted from outside an organization, offering services, projects, or solutions to address the organization's needs or challenges.

Effective Summary

A concise and clear representation of the main ideas and important details of a document or presentation, without unnecessary detail.