If Real GDP Is Greater Than Potential GDP, the Economy

question 131

Multiple Choice

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

• A)not in short-run equilibrium.
• B)in a recessionary equilibrium.
• C)in an above full-employment equilibrium.
• D)in a below full-employment equilibrium.
• E)in long-run equilibrium.

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Definitions:

Significant Figures

The digits of a number that are meaningful in terms of accuracy or precision, important in scientific and mathematical calculations.

Percent

A part or other object per hundred, used in mathematics to describe how one quantity relates to another in terms of proportion or fraction.

Accurate

Definition: Precisely correct or exact in details.

Cent

The smallest denomination of currency in many countries, representing 1/100th of the basic unit of currency.