Use the following information to answer questions 5 through 7: The graph below shows the AD-AS diagram for Spain. All numbers are in billions. 1100+ 1000 AD 900 - 800 - 700+ 600+ 500+ 400+ 300- 200 100+ LRAS 100 200 300 400 500 600 700 800 900 1000 110 Real GDP 5. What is the level of Potential GDP in Spain? 6. What is the size of real GDP in the short-run equilibrium? 7. What is the price level in the short-run equilibrium? Price Level

Use the following information to answer questions 5 through 7: The graph below shows the AD-AS diagram for Spain. All numbers are in billions. 1100+ 1000 AD 900 - 800 - 700+ 600+ 500+ 400+ 300- 200 100+ LRAS 100 200 300 400 500 600 700 800 900 1000 110 Real GDP 5. What is the level of Potential GDP in Spain? 6. What is the size of real GDP in the short-run equilibrium? 7. What is the price level in the short-run equilibrium? Price Level

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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