If Real GDP Is Less Than Potential GDP, Then the Economy

question 420

Multiple Choice

If real GDP is less than potential GDP, then the economy is ________ equilibrium.

• A) at an above-full-employment
• B) not in short-run macroeconomic
• C) at a below-full-employment
• D) in long-run macroeconomic

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Definitions:

Part-Time Employees

Part-time employees are workers who are employed for fewer hours than the standard full-time work schedule, often without the same benefits as full-time employees.

Utility Bill

A monthly fee paid for services such as electricity, water, and gas consumption.

Economic Costs

The total cost of choosing one action over another, including both explicit costs (direct payments) and implicit costs (opportunity costs).

Accounting Costs

Explicit costs involving monetary payment or outlay by an organization or individual for goods or services.