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In the Short Run, If the Economy Is at Full

Question 114

Multiple Choice

In the short run, if the economy is at full employment then the quantity of real GDP


A) is equal to potential GDP and the unemployment rate is equal to the natural unemployment rate.
B) does not necessarily equal potential GDP but the unemployment rate is equal to the natural unemployment rate.
C) exceeds potential GDP and the unemployment rate is less than the natural unemployment rate.
D) is equal to potential GDP but the unemployment rate is less than the natural unemployment rate.
E) is equal to potential GDP but the unemployment rate does not necessarily equal the natural unemployment rate.

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