Does the achievement of macroeconomic equilibrium imply full employment
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An economy that is operating above its full-employment equilibrium simply means that it is producing goods and services, as measured by its GDP, at a higher level than either its potential or its long-run average levels. ... When the market is in equilibrium, there will not be any excess supply in the short run.
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An economy that operates above its full employment equilibrium means it produces goods and services at a higher rate than its potential or long-run average levels as measured by its GDP. The amount by which the current real GDP is greater than the historic average is called an inflationary gap
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