QUESTION 3- choose the most accurate answers LRAS 250 SRAS 200 G F 150 E OK 100

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QUESTION 3- choose the most accurate answers LRAS 250 SRAS 200 G F 150 E OK 100 50 15 17 Real GDP (trillions of 2009 dollars The above figure shows the long run aggregate supply curve (LAS) and the short run aggregate supply curve (SAS) for a hypothetical economy. Using the information in the figure, answer the following questions. a) Which movement illustrates the impact of a falling price level and a constant (sticky) wage rate? EtoI /E to F EtoJ Eto H] b) There is no cyclical unemployment if real GDP equals S trillion. c) The economy would be in an expansion if real GDP was / higher than 16/ lower than 17]. [ higher than 15/ lower than 15

Explanation / Answer

Answer:- which movement illustrates the impact of a falling price level and a constant money wage rate?

Correct Answer:- E to I

Answer:- there is no cyclic unemployment if real GDP equals

Correct Answer:- $17 trillion

Reason:- At output to the right of the LRAS curve, there will be no cyclical unemployment

Answer:- the economy would be in an expansion if real GDP Was

Correct Answer:-Higher than 16

Reason:- The GDP will be in expansion when it is more than the equilibrium point which is at 16 trillion

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