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The accompanying graph depicts a macro equilibrium. Answer the questions below based on the information in the graph. 600 500 400 Price Level (average price)
The accompanying graph depicts a macro equilibrium. Answer the questions below based on the information in the graph. 600 500 400 Price Level (average price) 300 200 100 AD 200 400 600 800 1,000 1,200 1,400 Real GDP (in billions of dollars per year) Instructions: Enter your responses as a whole number. a. What is the equilibrium rate of real GDP? 5 billion b. If full-employment real GDP is $1,150 billion, what problem does this economy have? This economy has a recessionary gap. This economy has an inflationary gap. This economy does not have a problem. c. How large is the real GDP gap? billion
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