Question

A macroeconomic equilibrium occurs when the A.quantity of real GDP demanded equals the quantity of real...

A macroeconomic equilibrium occurs when the

A.quantity of real GDP demanded equals the quantity of real GDP supplied even if they are not equal to potential GDP.

B.quantity of real GDP demanded equals the quantity of real GDP supplied and both equal potential GDP.

C.quantity of real GDP demanded is greater than the quantity of real GDP supplied.

D.quantity of real GDP demanded is less than the quantity of real GDP supplied.

E.None of the above answers is correct.

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Answer #1

Option A

the quantity of real GDP demanded equals the quantity of real GDP supplied even if they are not equal to potential GDP

A macroeconomic equilibrium occurs when the quantity of real GDP demanded equals the quantity of real GDP supplied even if they are not equal to potential GDP as the AD=AS is the short run equilibrium where potential GDP is LRAS which is equal then that is long-run equilibrium so the equilibrium in short run is at AS=AD and it is not necessary to be at LRAS=AS=AD.

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