When equilibrium GDP is greater than potential GDP, jobs are plentiful and labor is in great demand.
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Q25: If short-run equilibrium GDP is above potential
Q26: If aggregate demand is $2,000 billion and
Q27: A decrease in the availability of an
Q28: Inflation reduces the multiplier effect by reducing
Q29: When equilibrium GDP is below potential GDP,
Q31: A vertical aggregate supply curve increases the
Q32: Recessionary gap is the amount by which
Q33: Stagflation is inflation that occurs while the
Q34: The economy does have a self-correcting mechanism
Q35: In our modern economy, the adjustment process
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