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Equilibrium GDP and Prices
Short-run macroeconomic equilibrium may occur at a level above or below full employment.
Four possible types of macroeconomic equilibrium:
1 Long-run full employment
2 Short-run recessionary gap
3 Short-run inflationary gap
4 Short-run stagflation
Real GDP & Nominal GDP:Real GDP Nominal GDP:Real:PerGDPthe quantity of output available for consumption and investment.
GDP and GNP:quarter.,Gross,outside of the country.
Equilibrium GDP and Prices – Stagflation:and energy lead to a decrease in AS;increasing investment in commodities or commodity-based companies.
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