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    current long-run equilibrium level of real GDP

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    Working with Graphs

    Consider the graph below, and answer the following questions:

    a)What is the current long-run equilibrium level of real GDP?
    b)What is the current long-run equilibrium price level?
    c)If the economy grows sufficiently at $2 trillion, real GDP remains forthcoming in the long run, and the aggregate demand remains unchanged, what will be the new long-run equilibrium price level? Use a Graph to show the shift.

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    Jennifer Bruner
    Macroeconomics
    January 17, 2007

    Working with Graphs

    Consider the graph below, and answer the following questions:

    a) What is the current long-run equilibrium level of real GDP?
    This is obtained as the point on the x-axis where the ...

    Solution Summary

    The current long-run equilibrium level of real GDP is denoted.

    $2.49

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