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Identify the macro equilibrium. Instructions: Use the tool provided 'QE' to identify the current macro equilibrium on the graph. The current macro equilibrium is when real GDP is $ __ billion. b. The real GDP gap is $__ billion. c. The AD excess is $__ billion. d. Identify the new equilibrium that would occur with appropriate fiscal policy. Instructions: Use the tool provided 'QF' to identify the new equilibrium that would occur with appropriate fiscal policy.

Exploring Economics

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter19: Measuring Economic Performance

Section: Chapter Questions

Problem 12P

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Instructions: Enter your responses as a whole number.

a. Identify the macro equilibrium.

Instructions: Use the tool provided 'Q_E' to identify the current macro equilibrium on the graph.

The current macro equilibrium is when real GDP is $ __ billion.

b. The real GDP gap is $__ billion.

c. The AD excess is $__ billion.

d. Identify the new equilibrium that would occur with appropriate fiscal policy.

Instructions: Use the tool provided 'Q_F' to identify the new equilibrium that would occur with appropriate fiscal policy.

This full-employment GDP is $ __ billion.

Use the accompanying graph to answer the following questions:
Price Level
10
9
8
7
6
5
4
3
2
1
сл
0
2 4 6 8
AS
AD
10 12 14 16 18 20
QF
Real GDP (in billions of dollars per year)
Tools
-i
QE
QF
Ⓡ

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