13. The economy is in short-run macroeconomic equilib- rium at point Ej in the accompanying diagram. Based on the diagram, answer the following questions. LRAS Aggregate price level SRAS1 E1 P1 AD1 Y1 Yp Real GDP a. Is the economy facing an inflationary or a recession ary gap? ..... . ..
13. The economy is in short-run macroeconomic equilib- rium at point Ej in the accompanying diagram. Based on the diagram, answer the following questions. LRAS Aggregate price level SRAS1 E1 P1 AD1 Y1 Yp Real GDP a. Is the economy facing an inflationary or a recession ary gap? ..... . ..
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![13. The economy is in short-run macroeconomic equilib-
rium at point E in the accompanying diagram. Based
on the diagram, answer the following questions.
LRAS
Aggregate
price
level
SRAS1
E1
P1
AD1
Y1
Yp
Real GDP
a. Is the economy facing an inflationary or a recession-
ary gap?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6bcf5c65-3e28-44a9-ac37-05361d942600%2F0d586690-d0d4-44f5-81b0-7850def28124%2Fioxmgkh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:13. The economy is in short-run macroeconomic equilib-
rium at point E in the accompanying diagram. Based
on the diagram, answer the following questions.
LRAS
Aggregate
price
level
SRAS1
E1
P1
AD1
Y1
Yp
Real GDP
a. Is the economy facing an inflationary or a recession-
ary gap?
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