The AD/AS model assumes the actual GDP is 19.1 billion, the
price level (GDP Deflator) is 220 and the potential real GDP is
$19.5 billion. After a year, technology decreases, inflationary
expectations decrease, and consumer spending increases. However,
the technology "shock" is more than the expectations &
consumer spending shocks but the inflationary expectations
shock is less than the consumer spending shock. As a
result, of these shocks, in the AD/AS model, the price level
_____, output ________and the unemployment rate
____________.
The AD/AS model assumes the actual GDP is 19.1 billion, the price level (GDP Deflator) is 220 and the potential real GDP
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