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managerial-economics :questions relating to GDP

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questions relating to GDP and output gap : A. Using the above graph, Equilibrium E here represents what kind of output gap and what is the size of the output gap.

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									              Sub: Economics                                                                Topic: Macro Economics



              Question:
              Questions relating to GDP and output gap
         ClassOf1 provides expert guidance to College, Graduate, and High school students on homework and assignment problems in
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                   A. Using the above graph, Equilibrium E here represents what kind of output gap and what
                        is the size of the output gap.
                   B. Define monetary policy.
                   C. Describe how monetary policy restores full employment.



              Solution:


              A) At point E, the economy is facing a recessionary gap because the equilibrium real GDP is less
              than the potential GDP.

              Size of the recessionary 
								
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