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At which equilibrium point does the economy have an inflationary gap, and what is the value of such a gap in percentage points? What government

At which equilibrium point does the economy have an inflationary gap, and what is the value of such a gap in percentage points? What government policy should be recommended for this specific macroeconomic problem? What does the point E1 represent?


Price Level CPI 146 136 Potential GDP LRAS 1.8 E2 E 2.1 2.2 E3 AS AD3 AD www. w w AD wwww. Real GDP 

Price Level CPI 146 136 Potential GDP LRAS 1.8 E2 E 2.1 2.2 E3 AS AD3 AD www. w w AD wwww. Real GDP (Trillions CAD)

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