Question: Use the AS curve from the previous problem to determine the price level when the price level last year was $6.25 per unit and the

Use the AS curve from the previous problem to determine the price level when the price level last year was $6.25 per unit and the level of GDP is $92 per year. Explain the significance of your answer in light of problem 2.

This problem make use of the following data for a hypothetical economy. The mark-up is .25, the wage curve is W/P = 1-2.5u, and the labor force is 100 workers. Recall that the production function is Y = N and P = P-1-

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