Asked by Simply Eleni on May 27, 2024
Verified
Actual output can exceed the economy's potential both in the short run and the long run.
Actual Output
The total value of goods and services produced by an economy at a given period, also known as real GDP.
- Learn the concept and impacts of short-duration and prolonged aggregate supply curves.
Verified Answer
KM
Kristian MartinezMay 29, 2024
Final Answer :
False
Explanation :
In the short run, actual output can exceed the economy's potential output due to demand fluctuations, but in the long run, actual output tends to align with potential output as resources and prices adjust.
Learning Objectives
- Learn the concept and impacts of short-duration and prolonged aggregate supply curves.