Answer questions a through F on the basis of the following graph:    a. If the actual price level exceeds the expected price level reflected in long term contracts, real GDP equals ____________ and the actual price level equals _________ in the short run.  b. The situation described in part a result in a _________ gap equals to ____________.  c. If the actual price level is lower than the expected price level reflected in long term contracts, real GDP equals __________ and the actual price level equals ________ in the short run.  d. The situation described in part C result in a ________ gap equal to ___________

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Answer questions a through F on the basis of the following graph: 

 

a. If the actual price level exceeds the expected price level reflected in long term contracts, real GDP equals ____________ and the actual price level equals _________ in the short run. 

b. The situation described in part a result in a _________ gap equals to ____________. 

c. If the actual price level is lower than the expected price level reflected in long term contracts, real GDP equals __________ and the actual price level equals ________ in the short run. 

d. The situation described in part C result in a ________ gap equal to ___________ 

Potential
output
SRAS
130
120
110
17.7
18.0
18.2
Real GDP (trillions)
Price level
Transcribed Image Text:Potential output SRAS 130 120 110 17.7 18.0 18.2 Real GDP (trillions) Price level
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