Short-Run Macroeconomic Equilibrium Occurs When the Quantity of Real GDP

question 310

Multiple Choice

Short-run macroeconomic equilibrium occurs when the quantity of real GDP demanded

• A) equals potential GDP.
• B) equals full-employment GDP.
• C) does not equal full-employment GDP.
• D) equals the quantity of real GDP supplied.

---

Definitions:

Seafloor Spreading

The process by which new oceanic crust is formed at mid-ocean ridges and moves away from the ridge, contributing to continental drift.

Subduction

When tectonic plates converge, the movement of one plate beneath another into the mantle is referred to as subduction.

Continental Margins

The zones of the ocean floor that separate the thin oceanic crust from thick continental crust, including the continental shelf, slope, and rise.

Seafloor Spreading

The formation of new oceanic crust at mid-ocean ridges and its gradual movement away from the ridge.