Suppose long-run potential GDP is $10 trillion in 2023, and actual measured GDP in 2023 turns out to be $9.5 trillion. (a) Calculate the short-run output as defined in our course, Ỹ. (b) Is the economy considered in recession in 2023? Explain why or why not. (c) Briefly explain what the Fed can do to bring short-run GDP to the potential level in 2024, using the short-run model we studied in the second half of the course

Suppose long-run potential GDP is $10 trillion in 2023, and actual measured GDP in 2023 turns out to be $9.5 trillion. (a) Calculate the short-run output as defined in our course, Ỹ. (b) Is the economy considered in recession in 2023? Explain why or why not. (c) Briefly explain what the Fed can do to bring short-run GDP to the potential level in 2024, using the short-run model we studied in the second half of the course

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 1PA

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