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If the Short-Run Macroeconomic Equilibrium Occurs with Real GDP Greater

Question 54

Multiple Choice

If the short-run macroeconomic equilibrium occurs with real GDP greater than potential output,the economy is


A) at its full-employment level of output.
B) experiencing a recessionary output gap.
C) experiencing an inflationary output gap.
D) threatened with a demand shock.
E) operating at full capacity.

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