Price Level 8 7 6 5 4 3 2 1 0 2 AS AD 4 6 8 10 12 14 16 18 20 Real GDP (in billions of dollars per year) QE Instructions: Enter your responses as a whole number. a. Identify the macro equilibrium. Instructions: Use the tool provided 'QE' to identify the current macro equilibrium on the graph. The current macro equilibrium is when real GDP is $ Suppose that full-employment GDP is $13 billion. b. The real GDP gap is $ billion. c. Aggregate demand must shift (left or right) by $ billion. billion to achieve the full-employment equilibrium.

Price Level 8 7 6 5 4 3 2 1 0 2 AS AD 4 6 8 10 12 14 16 18 20 Real GDP (in billions of dollars per year) QE Instructions: Enter your responses as a whole number. a. Identify the macro equilibrium. Instructions: Use the tool provided 'QE' to identify the current macro equilibrium on the graph. The current macro equilibrium is when real GDP is $ Suppose that full-employment GDP is $13 billion. b. The real GDP gap is $ billion. c. Aggregate demand must shift (left or right) by $ billion. billion to achieve the full-employment equilibrium.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 6SCQ: Suppose concerns about the size of the federal budget deficit lead the U.S. Congress to cut all...

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