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Due to a price shock, inflation increases by 2% . If the economy is at potential output prior to the
price shock, what will real GDP be (expressed as the percent deviation from potential GDP) in
the short run? %

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Due to a price shock- inflation increases by 2-- If the economy is at.pdf

  • 1. Due to a price shock, inflation increases by 2% . If the economy is at potential output prior to the price shock, what will real GDP be (expressed as the percent deviation from potential GDP) in the short run? %