Identify the macro equilibrium.  Instructions: Use the tool provided 'QE' to identify the current macro equilibrium on the graph.        The current macro equilibrium is when real GDP is $ __  billion.   b. The real GDP gap is $__  billion.   c. The AD excess is $__  billion.   d. Identify the new equilibrium that would occur with appropriate fiscal policy.     Instructions: Use the tool provided 'QF' to identify the new equilibrium that would occur with appropriate fiscal policy.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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   Instructions: Enter your responses as a whole number.

 

a. Identify the macro equilibrium.

 Instructions: Use the tool provided 'QE' to identify the current macro equilibrium on the graph.

 

     The current macro equilibrium is when real GDP is $ __  billion.

 

b. The real GDP gap is $__  billion.

 

c. The AD excess is $__  billion.

 

d. Identify the new equilibrium that would occur with appropriate fiscal policy.

    Instructions: Use the tool provided 'QF' to identify the new equilibrium that would occur with appropriate fiscal policy.

 

     This full-employment GDP is $ __  billion.

Use the accompanying graph to answer the following questions:
Price Level
10
9
8
7
6
5
4
3
2
1
сл
0
2 4 6 8
AS
AD
10 12 14 16 18 20
QF
Real GDP (in billions of dollars per year)
Tools
-i
QE
QF
Ⓡ
Transcribed Image Text:Use the accompanying graph to answer the following questions: Price Level 10 9 8 7 6 5 4 3 2 1 сл 0 2 4 6 8 AS AD 10 12 14 16 18 20 QF Real GDP (in billions of dollars per year) Tools -i QE QF Ⓡ
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