Question: a. Is the equilibrium GDP the same as the potential GDP in the AE model? Briefly explain. (3pts) b. If the quantity of final

a. Is the equilibrium GDP the same as the potential GDP in the AE model? Briefly explain. (3pts) b. If the quantity of final goods and services produced decreased, could real GDP increase? Could nominal GDP increase? If so, how? Briefly explain. (3pts)

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a No the equilibrium GDP is not the same as potential GDP in the AE Aggregate Expenditure model The equilibrium GDP represents the level of output whe... View full answer

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