According to the Congressional Budget Office's projections, real GDP in 2007 was marginally higher than real potential GDP. If potential GDP is correctly assessed, then during that period : (A) the economy was on its long run aggregate supply curve. (B) the economy was to the left of its long run aggregate supply curve. (C) the economy was slightly to the right of its long run aggregate supply curve.
According to the Congressional Budget Office's projections, real GDP in 2007 was marginally higher than real potential GDP. If potential GDP is correctly assessed, then during that period : (A) the economy was on its long run aggregate supply curve. (B) the economy was to the left of its long run aggregate supply curve. (C) the economy was slightly to the right of its long run aggregate supply curve.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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According to the Congressional Budget Office's projections, real
(A) the economy was on its long run
(B) the economy was to the left of its long run aggregate supply curve.
(C) the economy was slightly to the right of its long run aggregate supply curve.
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