Use the table above to answer the following questions. a) What is the value of real GDP and price level at the long run macroeconomic equilibrium? b) What is the value of real GDP and price level at the short run macroeconomic equilibrium? c) Is the short-run macroeconomic equilibrium a full-employment equilibrium, below full- employment equilibrium, or above full-employment equilibrium? d) How will this economy return to its long run equilibrium? Explain using self-correcting mechanism.
Use the table above to answer the following questions. a) What is the value of real GDP and price level at the long run macroeconomic equilibrium? b) What is the value of real GDP and price level at the short run macroeconomic equilibrium? c) Is the short-run macroeconomic equilibrium a full-employment equilibrium, below full- employment equilibrium, or above full-employment equilibrium? d) How will this economy return to its long run equilibrium? Explain using self-correcting mechanism.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter23: The International Trade And Capital Flows
Section: Chapter Questions
Problem 16SCQ: Both the United States and global economies are booming. Will U.S. imports and/or exports increase?
Related questions
Question
2) Use the table above to answer the following questions.
a) What is the value of real GDP and price level at the long run
b) What is the value of real GDP and price level at the short run macroeconomic equilibrium?
c) Is the short-run macroeconomic equilibrium a full-employment equilibrium, below full-
employment equilibrium, or above full-employment equilibrium?
d) How will this economy return to its long run equilibrium? Explain using self-correcting
mechanism.
![Price level
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Short Run Aggregate Aggregate Demand Long Run Aggregate
Supply
650
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Supply
700
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700](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1bc76a9a-f398-4c65-b601-6de3843cbce5%2Fd4379cba-64aa-4cb6-9f85-dc6ac97cb184%2Fkcr1pzm_processed.png&w=3840&q=75)
Transcribed Image Text:Price level
130
140
150
160
170
180
Short Run Aggregate Aggregate Demand Long Run Aggregate
Supply
650
700
750
800
850
900
850
800
750
700
650
600
Supply
700
700
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700
700
700
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