An article in the New York Times in early 2015 stated that economists at the Federal Reserve
Question:
An article in the New York Times in early 2015 stated that economists at the Federal Reserve were forecasting that "real GDP would expand at a faster pace than potential output in 2015" and that the inflation rate during 2015 would be about 1 percent.
a. Fill in the blank cells in the table with estimates that are consistent with these forecasts.
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b. Draw a dynamic aggregate demand and aggregate supply graph to illustrate your answer to part a.
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a Potential GDP increases by So to be consistent with the economis...View the full answer
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