Exhibit 14A-3 Macro AD-AS Model Price level CPI P3 P₂ P₁ LRAS SRAS Yp Y₁ AD Real GDP (billions of dollars per year) In Exhibit 14A-3, the level of real GDP represented by Yp: O is potential real GDP for this economy. O indicates that the economy is experiencing zero inflation. O indicates that the economy is experiencing a recessionary gap. O would be associated with considerable unemployment.

Exhibit 14A-3 Macro AD-AS Model Price level CPI P3 P₂ P₁ LRAS SRAS Yp Y₁ AD Real GDP (billions of dollars per year) In Exhibit 14A-3, the level of real GDP represented by Yp: O is potential real GDP for this economy. O indicates that the economy is experiencing zero inflation. O indicates that the economy is experiencing a recessionary gap. O would be associated with considerable unemployment.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macroeconomics And The Self Regulating Economy

Section: Chapter Questions

Problem 6WNG

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