What is the current equilibrium price level and real GDP for the economy illustrated in the figure above? Does this economy have an inflationary gap, a recessionary gap, or neither? As it adjusts toward full employment, which curve shifts?
What is the equilibrium real GDP and price level that the economy will ultimately reach?
The equilibrium is where the aggregate demand and aggregate supply curves intersect. Thus the equilibrium price level is 110 and equilibrium real GDP is $16.5 trillion. Real GDP exceeds potential GDP, so the economy has an inflationary ga
Economics
You might also like to view...
In the long run, the real interest rate is 3 percent, real GDP grows at 4 percent, velocity is constant, and the quantity of money grows at 8 percent. The nominal interest rate is
A) 7 percent. B) 12 percent. C) 10 percent. D) 8 percent. E) 6 percent.
Economics
A country's balance of payment accounts include its government budget deficit or surplus
Indicate whether the statement is true or false
Economics