1. You are told that real GDP is below potential GDP. Using aggregate supply curves, graphically...

  

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1. You are told that real GDP is below potential GDP. Using aggregate supply curves, graphically indicate a point, labelled point A, which would reflect this information. Make sure to fully label your diagram. 2. Define the macroeconomic long-run and short-run. [6 marks] answer. [2 marks] 3. You are told that the higher the price level, the greater the quantity of real GDP supplied, and the lower the price level, the smaller the quantity of real GDP supplied. For this statement to apply, what must be true about other factors? List these factors in your [5 marks] 4. Consider the following information. In 2013, the CPI was 232.1, and in 1913, it was 9.9. In 1913, the price of a pen was R0.02 and in 2013, the price of a pen was R0.49. Using this information and real prices, calculate the price difference between pens in 2013 rands and 1913 rands. Make sure to include all formulae in your calculation. [4 marks] 1. You are told that real GDP is below potential GDP. Using aggregate supply curves, graphically indicate a point, labelled point A, which would reflect this information. Make sure to fully label your diagram. 2. Define the macroeconomic long-run and short-run. [6 marks] answer. [2 marks] 3. You are told that the higher the price level, the greater the quantity of real GDP supplied, and the lower the price level, the smaller the quantity of real GDP supplied. For this statement to apply, what must be true about other factors? List these factors in your [5 marks] 4. Consider the following information. In 2013, the CPI was 232.1, and in 1913, it was 9.9. In 1913, the price of a pen was R0.02 and in 2013, the price of a pen was R0.49. Using this information and real prices, calculate the price difference between pens in 2013 rands and 1913 rands. Make sure to include all formulae in your calculation. [4 marks]

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Here are the answers 2 The macroeconomic longrun is defined as the period when prices are flexible a... View the full answer