If the economy is in short run equilibrium then
A) real GDP equals potential GDP.
B) nominal GDP equals potential GDP.
C) real GDP cannot be equal to potential GDP.
D) real GDP can be greater than, less than, or equal to potential GDP.
Question 2
A bank's required reserves are calculated by multiplying ________.
A) its deposits by the required reserve ratio
B) the sum of its deposits and cash in its vault by the required reserve ratio
C) cash in its vault by the required reserve ratio
D) the gold in its vault by the required reserve ratio
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