Bookmarks Window Help finlandia.instructure.com (Chapters 21 and 22) Homework Help - Q&A from Online Tutors - Course Hero Price level LRAS SRAS P2 P1 G D AD2 ADI AD3 Y3 Y2 Real GDP per year Use the graph above to answer the following questions: At which point is the economy at equilibrium (no gaps)? [ Choose ] contractionary P2 What is the value of potential GDP? E C P3 At point B, what kind of gap exists? recessionary P1 expansionary If you are at point C, and government spending and consumption fall increase, what will happen to prices? A P4 inflationary Moving from point C to point B would be what type interventioni policy? F Y2 Y1 In the long run, at point D , what is the price level? Y3 D B At a GDP level of Y3, what kind of gap is created? rise 4 8 14 MAR 5 itvfinlandia.instructure.com Chapters 21 and 22) Homework Help - Q&A from Online Tutors - Course Hero Price level LRAS E SRAS B G D AD AD AD3 Y3 Y1 Y2 Real GDP per year Use the graph above to answer the following questions: At which point is the economy at equilibrium (no gaps)? [ Choose ] What is the value of potential GDP? [Choose ] At point B, what kind of gap exists? [ Choose ] If you are at point C, and government spending and consumption [ Choose ] increase, what will happen to prices? Moving from point C to point B would be what type interventionist [ Choose ] policy? In the long run, at point D , what is the price level? [ Choose ] At a GDP level of Y3, what kind of gap is created? [ Choose ] 8 14 MAR 5 &tv D ul T