At a Peak in the Business Cycle, the Macroeconomic Equilibrium

Multiple Choice

At a peak in the business cycle, the macroeconomic equilibrium is ________ the level of potential real GDP.

A) greater than
B) less than
C) equal to
D) falling below
E) None of the above answers is always correct because the relationship depends on whether the previous phase of the business cycle had been a recession or an expansion.