At a Peak in the Business Cycle, the Macroeconomic Equilibrium

question 80

Multiple Choice

At a peak in the business cycle, the macroeconomic equilibrium is ________ the level of potential real GDP.

• A) greater than
• B) less than
• C) equal to
• D) falling below
• E) None of the above answers is always correct because the relationship depends on whether the previous phase of the business cycle had been a recession or an expansion.

---

Definitions:

Prion

A type of infectious agent made up of protein in a misfolded form, which is known to cause a number of neurodegenerative diseases.

Protein

Large molecules composed of one or more long chains of amino acids, essential for the structure, function, and regulation of the body's cells, tissues, and organs.

Multicelled Fungi

Organisms from the fungi kingdom that consist of more than one cell, including molds, mushrooms, and yeasts, known for their roles in decomposition and as pathogens.

Spores

Resistant, dormant forms of certain fungi, plants, and bacteria that can survive adverse conditions and give rise to a new individual.