If the Quantity of Real GDP Supplied Equals the Quantity

question 72

Multiple Choice

If the quantity of real GDP supplied equals the quantity of real GDP demanded,then

• A)nominal GDP must equal real GDP.
• B)real GDP must equal potential GDP.
• C)real GDP must be greater than potential GDP.
• D)real GDP might be greater than,equal to,or less than potential GDP.
• E)real GDP must be less than potential GDP.

---

Definitions:

Risk Premium

The extra return above the risk-free rate demanded by investors for holding a risky asset.

Fire Insurance

A type of property insurance that covers damage and losses caused by fire, providing financial compensation to the insured.

Utility Function

A formula used to quantify the satisfaction consumers derive from consuming various goods and services.

Risk Behaviors

Actions that expose individuals to a significant risk of harm or loss, often scrutinized in health, finance, and safety studies.