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6) Refer to Figure 26.3.5 above. What type of gap is shown by point B and how large this the gap in terms of Real GDP? V

6) Refer to Figure 26.3.5 above. What type of gap is shown by point B and how large this the gap in terms of Real GDP? V

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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hi this question is for Macroeconomics but on bartleby it show economics

Use the figure below to answer the following questions. Price level (GDP deflator, 2002 = 100) LAS 130 SAS 120 110 100 AD1 90 ADO 12.0 12.5 13.0 13.5 14.0 Real GDP (trillions of 2002 dollars) Figure 26.3.5 6) Refer to Figure 26.3.5 above. What type of gap is shown by point B and how large this the gap in terms of Real GDP? V 7) If in Figure 26.3.5 the economy does not return to full-employment equilibrium at point A, what will happen to the position of SAS and what type of inflation will result? 8) As a result of COVID-19, the Government of Canada has been actively using a discretionary fiscal stimulus policy. Using the Aggregate Supply – Aggregate Demand model, illustrate the intended impact of this policy on Aggregate Demand. Has the fiscal stimulus policy been effective? Why or why not? When the discretionary fiscal stimulus policy has ended, what actions with respect to the budget, will the government have to consider to address the debt level resulting from the discretionary fiscal stimulus policy?
Transcribed Image Text:Use the figure below to answer the following questions. Price level (GDP deflator, 2002 = 100) LAS 130 SAS 120 110 100 AD1 90 ADO 12.0 12.5 13.0 13.5 14.0 Real GDP (trillions of 2002 dollars) Figure 26.3.5 6) Refer to Figure 26.3.5 above. What type of gap is shown by point B and how large this the gap in terms of Real GDP? V 7) If in Figure 26.3.5 the economy does not return to full-employment equilibrium at point A, what will happen to the position of SAS and what type of inflation will result? 8) As a result of COVID-19, the Government of Canada has been actively using a discretionary fiscal stimulus policy. Using the Aggregate Supply – Aggregate Demand model, illustrate the intended impact of this policy on Aggregate Demand. Has the fiscal stimulus policy been effective? Why or why not? When the discretionary fiscal stimulus policy has ended, what actions with respect to the budget, will the government have to consider to address the debt level resulting from the discretionary fiscal stimulus policy?
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