An Economy Is in Long-Run Equilibrium When Aggregate Supply Unexpectedly

question 82

Multiple Choice

An economy is in long-run equilibrium when aggregate supply unexpectedly decreases. Then real GDP (ceteris paribus) will be

• A)above potential GDP.
• B)below potential GDP.
• C)equal to potential GDP.
• D)either above, below, or equal to potential GDP depending on the position of the aggregate demand curve.
• E)either above or equal to potential GDP depending on the position of the aggregate demand curve.

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An entity or person who has received a favorable judgment in court regarding a monetary debt owed by another party, known as the debtor.

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A court that deals with minor legal disputes and civil cases involving relatively small sums of money, designed to be more accessible than higher courts.