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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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Solution Summary

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

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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 ...

Purchase this Solution
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