inflat %agg dem”unemp %agg. supply 85202520 3.67423510 28204500 1.38565490 .98766480 .68877470 .58958460 .49009450 .390410440 12.Equilibrium GDP is…

inflat %                   agg dem”               unemp %               agg. supply

8                                 520                           2                                 520

3.6                             742                           3                                 510

2                                 820                           4                                 500

1.3                             856                           5                                 490

.9                                876                           6                                 480

.6                                887                           7                                 470         

.5                                895                           8                                 460

.4                                900                           9                                 450

.3                                904                           10                              440

12.Equilibrium GDP is 520_                                                                                  13.At equilibrium GDP inflation is 8_ %

14.At equilibrium GDP unemployment is 2_ %

15.To return inflation to 2% and unemployment to 4%, _ must be subtracted from each agg demand level.

16. For +10 points write the equation relating unemployment to aggregate supply.

17. for +30 points write the equation relating inflation to unemployment

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