Below full employment equilibrium occurs when an economy's short-run real GDP is lower than that same economy's long-run potential real GDP.

Below full employment equilibrium is the opposite of above full employment equilibrium, and an economy's short-run real GDP is lower than its long-run potential real GDP.

1. Textbook problems # 2, 5, 7, 8 from Chapter 8. Textbook problems # 9, 10, 11 from Chapter 9. 2. True/ False Questions. 1. Since long-run economic profits for a competitive firm are always zero, it ...