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April 20, 2014

April 20, 2014

Posted by **Amanda** on Wednesday, October 24, 2012 at 1:40pm.

a. If the actual price level exceeds the expected price level reflected in long-term contracts, real GDP equals _______ and the actual price level equals _______ in the short run.

b. The situation described in part (a) results in a(n) _______ gap equal to _______.

c. If the actual price level is lower than the expected price level reflected in long-term contracts, real GDP equals _______ and the actual price level equals _______ in the short run.

d. The situation described in part (c) results in a(n) _______ gap equal to _______.

e. If the actual price level equals the expected price level reflected in long-term contracts, real GDP equals _______ and the actual price level equals _______ in the short run.

f. The situation described in part (e) results in a(n) _______ gap equal to _______.

This what I have so far.....

a. 14.2 trill, 130

b. expansionary, 0.2 trill

c. 13.7 trill, 110

d. recessionary, 0.3 trill

e. 14.0 trill, 120

f. ??, ??

- Macroeconomics -
**Amanda**, Wednesday, October 24, 2012 at 1:42pmThe graph has a SRAS going up from

GDP 13.7 and 110 price level

GDP 14.0 and 120 price level

GDP 14.2 and 130 price level

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