Answer questions a through F on the basis of the following graph: a. If the actual price level exceeds the expected price level reflected in long term contracts, real GDP equals ____________ and the actual price level equals _________ in the short run. b. The situation described in part a result in a _________ gap equals to ____________. c. If the actual price level is lower than the expected price level reflected in long term contracts, real GDP equals __________ and the actual price level equals ________ in the short run. d. The situation described in part C result in a ________ gap equal to ___________

Answer questions a through F on the basis of the following graph: a. If the actual price level exceeds the expected price level reflected in long term contracts, real GDP equals ________ and the actual price level equals _ in the short run. b. The situation described in part a result in a _ gap equals to . c. If the actual price level is lower than the expected price level reflected in long term contracts, real GDP equals and the actual price level equals in the short run. d. The situation described in part C result in a gap equal to _____

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter10: Aggregate Supply

Section: Chapter Questions

Problem 2.3P

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