Suppose real GDP = $148 billion and full-employment GDP = $160. Based on this information you...

Question

Question

Suppose real GDP = $148 billion and full-employment GDP = $160. Based on this information you know:

Question 4 options:

You are at a short-run outcome

You are at a long-run outcome

The economy could be art a short-run or long-run outcome.

More information is needed to know which one is correct.

business economics

Answer 1

Answer #1

In the long run the real GDP is equal to potential GDP.In this case the real GDP is less than potential GDP,so this is a short run set up.

Answer-First option

Answer 2

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