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
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An increase in the marginal product of capital shifts the
A) supply of capital curve rightward. B) supply of capital curve leftward. C) demand for capital curve rightward. D) demand for capital curve leftward.
Which of the following is not a source of comparative advantage?
A) technology B) climate and natural resources C) a strong foreign currency exchange rate D) relative abundance of labor and capital