The table gives data for the nation of Pearl, a small island in the South Pacific. Price level (GDP deflator) Potential GDP (billions of 2012 dollars) Real GDP supplied (billions of 2012 dollars) Real GDP demanded (billions of 2012 dollars) 150 25 34 16 140 25 31 19 130 25 28 22 120 25 25 25 110 25 23 28 When the economy is at full employment the price level is A. 110. B. 130. C. 120. D. 140. E. 150.

The table gives data for the nation of Pearl, a small island in the South Pacific. Price level (GDP deflator) Potential GDP (billions of 2012 dollars) Real GDP supplied (billions of 2012 dollars) Real GDP demanded (billions of 2012 dollars) 150 25 34 16 140 25 31 19 130 25 28 22 120 25 25 25 110 25 23 28 When the economy is at full employment the price level is A. 110. B. 130. C. 120. D. 140. E. 150.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter6: How Statisticians Measure Inflation

Section6.A: How Statisticians Measure Inflation

Problem 6TY

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Price level (GDP deflator)	Potential GDP (billions of 2012 dollars)	Real GDP supplied (billions of 2012 dollars)	Real GDP demanded (billions of 2012 dollars)
150	25	34	16
140	25	31	19
130	25	28	22
120	25	25	25
110	25	23	28

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