1.At which equilibrium point does the economy have inflationary gap and what is the value of such gap in percentage point 2.what government policy should be recommended for this specific macroeconomic problem ? 3. What does e1 represent?
1.At which equilibrium point does the economy have inflationary gap and what is the value of such gap in percentage point 2.what government policy should be recommended for this specific macroeconomic problem ? 3. What does e1 represent?
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1.At which equilibrium point does the economy have inflationary gap and what is the value of such gap in percentage point
2.what government policy should be recommended for this specific
3. What does e1 represent?

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Price Level
CPI
146
136
Potential GDP
LRAS
E2
E₁
1.8 2.1 2.2
E3
24 OF 24 QUESTIONS R
AD₁
AS₁
AD3
AD₂
Real GDP (Trillions CAD)

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24 OF 24 QUESTIONS REMAINING
1. At which equilibrium point does the economy have an inflationary gap, and what is the value of
such a gap in percentage points?
2. What government policy should be recommended for this specific macroeconomic problem?
3. What does the point E₁ represent?
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