Following President Biden's inaugural speech, ncluding a detained strategy to produce and Histribute vaccines against the coronavirus, in February 2021, the Congressional Budget Office revised it 1- year projections for conomic growth. According to these new protections, the economic expansion that begin in mid-2020 will continue. Real GDP is projected to return to its prepandemic level in mid-2021 and to surpass potential output in

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Following President Biden's inaugural speech,
including a detained strategy to produce and
distribute vaccines against the coronavirus, in
February 2021, the Congressional Budget
Office revised it 1- year projections for
economic growth. According to these new
protections, the economic expansion that
begin in mid-2020 will continue. Real GDP is
projected to return to its prepandemic level in
mid-2021 and to surpass potential output in
2026.
Although households are encouraged by the
news from the CBO, its projections are silent
on wages, which are the main source of
income for the vast majority of American
households. How will this long run
equilibrium affect nominal wages compared
with nominal wages today? What about the
real wages?
Transcribed Image Text:Following President Biden's inaugural speech, including a detained strategy to produce and distribute vaccines against the coronavirus, in February 2021, the Congressional Budget Office revised it 1- year projections for economic growth. According to these new protections, the economic expansion that begin in mid-2020 will continue. Real GDP is projected to return to its prepandemic level in mid-2021 and to surpass potential output in 2026. Although households are encouraged by the news from the CBO, its projections are silent on wages, which are the main source of income for the vast majority of American households. How will this long run equilibrium affect nominal wages compared with nominal wages today? What about the real wages?
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