Answered step by step
Verified Expert Solution
Question
1 Approved Answer
At Price level 100 demand is 13 short run aggregate supply is nine long range aggregate supply is 10 at Price of 105 aggregate demand
At Price level 100 demand is 13 short run aggregate supply is nine long range aggregate supply is 10 at Price of 105 aggregate demand is 12 short run aggregate supply is 10 long run aggregate supply is 10 at Price level 110 I demand is 11 Short run aggregate supply is 11 long run aggregate supply is 10 at Price level 115 aggregate demand is 10 short aggregate supply is 13 Long-run aggregate supply is 10 Using the data in the short run and macro economic equilibrium there is A and inflationary gap of 2 trillion B a recessionary gap of 2 trillion C a recessionary gap of 1 trillion in D B a recessionary gap of 2 trillion capital C a recessionary gap of 1 trillion in D an inflationary gap of 1 trillion
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started