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Unformatted text preview: Price Index LRAS0 SRAS1 E1 SRAS0 e1 SRAS2 Figure 1 E0 e2 AD1 E2 AD2 AD0 Real GDP Y f 2. In the above figure, what is correct when long run equilibrium moves from E2 to E1? a. Real GDP is different in the two LR equilibria. b. Nominal GDP is different in the two LR equilibria. c. Actual unemployment rate is different in the two LR equilibria. d. Actual price level was equal to the anticipated price level at E2, but it is not equal to anticipated price level at E1....
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This note was uploaded on 02/07/2011 for the course ECON 3461 taught by Professor Spencer during the Spring '10 term at Golden West College.
- Spring '10