If Real GDP Is Less Than Potential GDP, the Economy

question 131

Multiple Choice

If real GDP is less than potential GDP, the economy is

• A) not in macroeconomic equilibrium.
• B) at full employment.
• C) in an above-full-employment equilibrium.
• D) in a below-full-employment equilibrium.

---

Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value over time.

Accounts Payable

Liabilities or amounts owed by a company to its creditors for goods or services that have been delivered but not yet paid for.

Depreciation Expense

The portion of the cost of a fixed asset that is considered consumed during a specific accounting period, used to reflect wear and tear.

Accounts Receivable

Amounts due from customers to an enterprise for delivered but unpaid goods or services.