What are the price level and real GDP? Does Free zone have an unemployment problem or an

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What are the price level and real GDP? Does Free zone have an unemployment problem or an inflation problem? Why?

Figure 17.3 shows the aggregate demand curve, AD, and the short-run aggregate supply curve, AS, in the economy of Free zone. Potential GDP is $300 billion.

FIGURE 17.3 Chapter Checkpoint Assignable Problems 6 to 9 Price level (GDP price index) 140 130. AS 120- 110 100 AD 200

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Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

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Question Posted: May 22, 2018 01:25 AM

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What are the price level and real GDP? Does Free zone have an unemployment problem or an

Question:

FIGURE 17.3 Chapter Checkpoint Assignable Problems 6 to 9 Price level (GDP price index) 140 130. AS 120- 110 100 AD 200 300 500 100 400 Real GDP (billions of 2009 dollars)

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The price level is 110 a...View the full answer

Foundations of Macroeconomics

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