| suppose the economy is self-regulationg, the price level is 132, the quantity demanded of real GDP is $ 4 trillion, the quantity supplied of real GDP in the short run is $3.9 trillion, and the quantity supplied of real GDP in the long run is $4.3 trillion. Is the economy in short run equilibrium? Will the price level in long run equilibrium be greater than, less than, or equal to 132? Explain your answer.
|
