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You are an economic advisor trying to find out where the economy will go. You have the following forecasts for the aggregate demand, short-term aggregate

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You are an economic advisor trying to find out where the economy will go. You have the following forecasts for the aggregate demand, short-term aggregate supply, and long-term aggregate supply curves: GDP deflator Real GDP demanded Real GDP offered short- Real GDP offered long- (Mill pesos out of 87) term (Mill pesos out of term (Mill pesos out of 87) 87) 115 6.5 3.5 5.2 120 6.0 4.5 5.2 125 5.5 5.5 5.2 130 5.0 6.5 5.2 This year, the real GDP is 5.0 million pesos out of 87 and the price level is 122. They ask the following questions: a) What is the real GDP forecast for next year? b) What is the forecast of the price level for the next year? c) What is your forecast of the inflation rate? d) Will unemployment be above or below its natural rate? e) Will there be a recession gap or an inflation gap? Of what magnitude

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