Some events change aggregate supply from AS 0 to AS 1 . Describe two possible events. What

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Some events change aggregate supply from AS0to AS1. Describe two possible events. What is the new equilibrium point? If potential GDP is $1 trillion, does the economy have an inflationary gap, a recessionary gap, or no gap?

FIGURE 13.2 Chapter Checkpoint Study Plan Problems 7 to 9 Price level (GDP price index) AS, 115 ASO 110 ..... 105 .....

Use Figure 13.2 to work Problem. Initially, the economy is at point B.


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Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

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