*7 Suppose that in problem 5 the price level is 100 and real GDP equals potential GDP....

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*7 Suppose that in problem 5 the price level is 100 and real GDP equals potential GDP. If investment increases by a100 billion, a What is the change in the quantity of real GDP demanded? b In the short run, does equilibrium real GDP increase by more than, less than or the same amount as the increase in the quantity of real GDP demanded? c In the long run, does equilibrium real GDP increase by more than, less than or the same amount as the increase in the quantity of real GDP demanded? d In the short run, does the price level in Zee rise, fall or remain unchanged? e In the long run, does the price level in Zee rise, fall or remain unchanged?

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Economics

ISBN: 9781509540235

6th Edition

Authors: Michael Parkin, Melanie Powell, Kent Matthews

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