The level of real GDP in the long run is calledQuestion 8Answera.low-capacity GDP.b.potential GDP.c.frictional GDP.d.short-run GDP.

Real GDP is the yearly production of final goods and services valued atGroup of answer choicescurrent prices.constant prices.expected future prices.the ratio of current prices to constant prices.

A decrease in aggregate demand causes a decrease in ________ only in the short run, but causes a decrease in ________ in both the short run and the long run.Question 4Answera.real GDP; the price levelb.the price level; the price levelc.the price level; real GDPd.real GDP; real GDP

There has been a decrease in investment. As a result, real GDP will ________ in the short run, and ________ in the long run.Question 6Answera.decrease; increase to its initial levelb.increase; increases furtherc.decrease; decrease furtherd.increase; decrease to its initial value

What is the level of GDP called when all the resources are being fully utilized at normal levels?Multiple choice question.Real GDPAdjusted GDPStructural GDPPotential GDP

3. If the short-run macroeconomic equilibrium occurs with real GDP less than Y*, the economy isA) at its full-employment level of output.B) experiencing a recessionary gap.C) experiencing an inationary gap.D) threatened with an acceleration of ination.E) operating at full [email protected]