Suppose that during 2009, the actual real GDP of Chile was 3.5 billion pesos at the same time the potential GDP was 3.4 billion pesos. What sort of equilibrium existed in Chile?
What will be an ideal response?
Chile's actual real GDP exceeded its potential GDP, so Chile was in an above-full-employment, inflationary gap equilibrium.
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If there are 2 identical firms in a market that choose the quantity they produce, total welfare is the highest when there is a cartel
Indicate whether the statement is true or false
If resource suppliers and demanders find out that the actual price level exceeds the expected price level, they will take corrective actions that will: a. cause the economy to move away from the potential output level
b. raise the unemployment level above the natural rate of unemployment. c. shift the aggregate demand curve of an economy. d. shift the short-run aggregate supply curve of an economy. e. lower the actual price level.