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Suppose the economy is self-regulating, the price level is 132, the quantity demanded of Real GDP is 4 trillion, the quantity supplied of Real GDP
Suppose the economy is self-regulating, the price level is 132, the quantity demanded of Real
GDP is 4 trillion, the quantity supplied of Real GDP in the short run is 3.9 trillion, and the
quantity supplied of Real GDP in the long run is 4.3 trillion. Is the economy in short-run
equilibrium? Will the price level in long-run equilibrium be greater than, less than, or equal to
132? Show the relevant graph and explain
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