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Assuming that the economy shown in the figure below is in equilibrium, calculate the recessionary or inflationary gap in each case below. AS 350 AD
Assuming that the economy shown in the figure below is in equilibrium, calculate the recessionary or inflationary gap in each case below. AS 350 AD 300 250 Price index 200 150 100 50 0 100 200 300 400 500 600 700 800 900 1000 Real GDP a. Potential GDP (LAS) is $300 then there is a(n) gap of $ b. Potential GDP (LAS) is $600 then there is a(n) gap of $ C. Potential GDP (LAS) is $750 then there is a(n) gap of s
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