In the short-run, real GDP can be greater than or less than potential GDP because in the short run the

A) money wage rate is fixed.
B) quantity of capital is fixed.
C) full-employment level of employment is fixed.
D) price level is fixed.

A

Economics

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Money is used as a unit of account. This means

a. money cannot store value for use in the future. b. money is used to measure the exchange value and costs of goods, services, assets and resources. c. money has little or no intrinsic value. d. money is dependent on the quantity of gold held by the Federal Reserve.

Economics

Which of the following correctly describes the relationship between private-sector spending and the federal budget?

a. A decline in private-sector spending reduces the demand for government services, that reduces fiscal outlays and contributes to a budget surplus. b. An increase in private-sector spending must be matched by increase in government spending. This increases fiscal outlays and contributes to a budget deficit. c. A decline in private-sector spending triggers automatic stabilizers that result in a federal budget deficit. d. An increase in private-sector spending must be matched by increase in government spending. This increases fiscal outlays and contributes to a balanced budget.

Economics