Student question Please Provide the answer for Question 3 and 4 PO Font & PIEL EO Learning Activity 8 Consider the following AD-AS model for an economy and answer the following questions. P2 R/GDPP/GDP R/GDP 5 LRAS E2 E ↑ AD2 R/GDP ADI Paragraph SRAS ADO 4. What are factors that can shift LRAS to the right? Answer: Time Left: 00:09:34 1. Indicate the point where the above economy is in equilibrium in the short run and long run? Answer: 2. Explain the inflationary gap in the above graph and how the economy can recover itself from this output gap? Answer: 3. Explain recessionary gap in the above graph and what kind of fiscal policy can be used by a government to recover the economy from this output gap. Answer:

Student question Please Provide the answer for Question 3 and 4 PO Font & PIEL EO Learning Activity 8 Consider the following AD-AS model for an economy and answer the following questions. P2 R/GDPP/GDP R/GDP 5 LRAS E2 E ↑ AD2 R/GDP ADI Paragraph SRAS ADO 4. What are factors that can shift LRAS to the right? Answer: Time Left: 00:09:34 1. Indicate the point where the above economy is in equilibrium in the short run and long run? Answer: 2. Explain the inflationary gap in the above graph and how the economy can recover itself from this output gap? Answer: 3. Explain recessionary gap in the above graph and what kind of fiscal policy can be used by a government to recover the economy from this output gap. Answer:

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macro Economics And The Self Regulating Economy

Section: Chapter Questions

Problem 6WNG

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