Short-Run Macroeconomic Equilibrium Occurs When the Quantity of Real GDP

question 310

Multiple Choice

Short-run macroeconomic equilibrium occurs when the quantity of real GDP demanded

• A) equals potential GDP.
• B) equals full-employment GDP.
• C) does not equal full-employment GDP.
• D) equals the quantity of real GDP supplied.

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Definitions:

Shares Issued

The total number of shares that a corporation has legally sold to shareholders, including those held by the public and by the company.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, usually with fixed dividends.

Net Income

The total profit or loss of a business after all expenses, including taxes and operating costs, have been deducted from total revenue.

Common Stock

A type of equity security that represents ownership in a corporation, giving the shareholder voting rights and a share in the company’s profits through dividends.