If the Economy Is at Long Run Equilibrium Then

question 126

Multiple Choice

If the economy is at long 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:

Environmental Forces

Various external factors and conditions that affect an organization's performance and decision-making processes, including economic, political, regulatory, and cultural factors.

Restaurant Industry

The sector of the economy dedicated to the operation of dining establishments providing food and beverage services to customers.

Knowledge

Information, understanding, or skill that one gets through experience or education.

Capitalize

To record an expense as an asset, rather than a cost, for purposes of financial accounting and future benefit realization.