-In the Figure Above, in the Short-Run Macroeconomic Equilibrium

question 231

Multiple Choice

-In the figure above, in the short-run macroeconomic equilibrium

• A) there is no structural unemployment.
• B) real GDP is greater than potential GDP.
• C) real GDP equals potential GDP.
• D) real GDP is less than potential GDP.

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Definitions:

Sod

A layer of earth in which the roots of grass are embedded, commonly used for lawns, golf courses, and sports fields to quickly establish a green surface.

Marginal Costs

The expense incurred from the production of one more unit of a product or service.

Average Cost

The total cost of production divided by the number of goods produced, representing the cost per unit of output.

Grazing

The act of animals eating grass or other vegetation growing close to the ground.