Use the accompanying graph to answer the following questions: Price Level 2 4 6 8 AS AD 12 14 16 18 20 dº Real GDP (in billions of dollars per year) billion. Tools 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 $[ b. The real GDP gap is $ billion. c. The AD excess is $ billion. -? OF billion. d. Identify the new equilibrium that would occur with appropriate fiscal policy. Instructions: Use the tool provided 'QF' to identify the new equilibrium that would occur with appropriate fiscal policy. This full-employment GDP is $1

Use the accompanying graph to answer the following questions: Price Level 2 4 6 8 AS AD 12 14 16 18 20 dº Real GDP (in billions of dollars per year) billion. Tools 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 $[ b. The real GDP gap is $ billion. c. The AD excess is $ billion. -? OF billion. d. Identify the new equilibrium that would occur with appropriate fiscal policy. Instructions: Use the tool provided 'QF' to identify the new equilibrium that would occur with appropriate fiscal policy. This full-employment GDP is $1

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section9.A: The Simple Algebra Of Income Determination And The Multiplier

Problem 4TY

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