Answers to review quizzes marcroeconomics 12e parkin chapter 10

... AD14 to ADpolicy Equilibrium real GDP is $16.7 trillion, the same as potential GDP The price level has risen, from 108 to a little less than 112 137 138 CHAPTER 10 e Use the AS-AD model to show... Explain and draw a graph to illustrate how the economy can adjust in the long run to restore a full-employment equilibrium Figure 10. 7 shows how the economy can adjust to its long-run equilibrium... from SAS to SAS1 At this point the price level has risen (to 121 in Figure 10. 7) and real GDP has returned to potential GDP (33.0 trillion yuan) 21 Suppose that the E.U economy goes into an expansion