If the Economy Is in Short Run Equilibrium Then

question 399

Multiple Choice

If the economy is in short run equilibrium then

• A) real GDP equals potential GDP.
• B) nominal GDP equals potential GDP.
• C) real GDP cannot be equal to potential GDP.
• D) real GDP can be greater than, less than, or equal to potential GDP.

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Definitions:

Alligator-apple

A tropical fruit from the Annona glabra tree, known for its apple-like appearance and flavor, often found in wetland areas.

Trace Consolidation

The process by which memories become stable in the brain, transitioning from a vulnerable state after initial encoding to a more lasting state.

Semantic Memory

Memory for facts (including word meanings); these memories are not tied to any specific time or place.

Hippocampus

A temporal lobe structure that plays a pivotal role in learning and forming new memories.