5. After the increase in health-care costs, each level of real GDP requires an increase in the price level of o.8. For example, producing $9.0 trillion worth of goods and services now requires a price level of 3.8. What is the short-run equilibrium level of real GDP? 6. After the health-care cost increase, what is the new equilibrium price level in the short run? 7. What sort of gap, if any, now exists?
5. After the increase in health-care costs, each level of real GDP requires an increase in the price level of o.8. For example, producing $9.0 trillion worth of goods and services now requires a price level of 3.8. What is the short-run equilibrium level of real GDP? 6. After the health-care cost increase, what is the new equilibrium price level in the short run? 7. What sort of gap, if any, now exists?
Chapter5: Gross Domestic Product
Section: Chapter Questions
Problem 4SQP
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