How can equilibrium output exceed full-employment output (as in Figure 10.9)? AS AC = $300 billion AI
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AS AC = $300 billion AI = $100 billion New spending causes sequential AD shifts and inflationary pressure. Po ADE - AD5 Inflationary KGDP AD, gap QF QE (= $3,000) REAL OUTPUT (in billions of dollars per year) PRICE LEVEL (average price)
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The Macro Economy Today
ISBN: 978-1259291821
14th edition
Authors: Bradley R. Schiller, Karen Gebhardt
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