If the economy is at long run equilibrium then
A) real GDP equals potential GDP.
B) nominal GDP equals potential GDP.
C) real GDP cannot be equal to potential GDP.
D) real GDP can be greater than, less than, or equal to potential GDP.
A
You might also like to view...
Consider to the accompanying payoff matrix. 
If player A makes his or her choice before player B, then what will be the equilibrium outcome of this game?
A. Player A and player B both get 60. B. Player A gets 5 and player B gets 70. C. Player A gets 70 and player B gets 5. D. Player A and player B both get 50.
How does inclusion of the current revenues and expenditures of the Social Security trust fund into the budget calculation affect the reported budget deficit of the federal government when the trust fund experiences a surplus?
A. It increases the reported deficit. B. It reduces the reported deficit. C. It exerts no effect on the reported deficit. D. It increases the deficit during an economic boom but reduces it during a recession.
At the end of the 18th century, approximately _______ percent of the American people earned a major portion of their income by farming
a. 25 b. 50 c. 70 d. 90
In a labor market with one employer, the MFC is:
a. above the labor supply curve. b. above the labor demand curve. c. what determines the wage. d. downward sloping. e. perfectly horizontal.