Use the accompanying graph to answer the following questions: Price Level 2 4 6 8 AS AD 12 14 16 18 20 dº Real GDP (in billions of dollars per year) billion. Tools QE 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 $[ b. The real GDP gap is $ billion. c. The AD excess is $ billion. -? OF 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 $1

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Use the accompanying graph to answer the following questions:
Price Level
10
9
8
7
6
5
3
2
1
0
AS
AD
24 6 8 10 12 14 16 18 20
Real GDP (in billions of dollars per year)
billion.
The current macro equilibrium is when real GDP is $
b. The real GDP gap is $[
billion.
c. The AD excess is $
Tools
-?
QE
O
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.
billion.
-
OF
< Prev 3 of 5
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.
Next >
Transcribed Image Text:Use the accompanying graph to answer the following questions: Price Level 10 9 8 7 6 5 3 2 1 0 AS AD 24 6 8 10 12 14 16 18 20 Real GDP (in billions of dollars per year) billion. The current macro equilibrium is when real GDP is $ b. The real GDP gap is $[ billion. c. The AD excess is $ Tools -? QE O 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. billion. - OF < Prev 3 of 5 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. Next >
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