a. What are the short-run equilibrium real GDP and price level in 2019? b. What is the long-run equilibrium real GDP? c. Is the short-run macroeconomic equilibrium a full-employment equilibrium, below full-employment equilibrium, or above full-employment equilibrium? d. In transition to the long run, how would the wages in this economy change? e. Following from d, explain how would the short run supply curve move to its long run position, as the changes in the nominal wages take effect. f. What will the long run price level be?

a. What are the short-run equilibrium real GDP and price level in 2019? b. What is the long-run equilibrium real GDP? c. Is the short-run macroeconomic equilibrium a full-employment equilibrium, below full-employment equilibrium, or above full-employment equilibrium? d. In transition to the long run, how would the wages in this economy change? e. Following from d, explain how would the short run supply curve move to its long run position, as the changes in the nominal wages take effect. f. What will the long run price level be?

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Introduction To Macroeconomics

Section: Chapter Questions

Problem 3.3P

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