Price level (GDP defiator, 2009-100 130 120 3110 100 90 - 90. LAS SAS X AD In the above figure, when the economy is in a long-run equilibrium, the price level will be O 110. O 120. O 100 150 155 160 165 170 175 Red COP pillions of 2000 dola

Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
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Problem 24CTQ: Why is the GDP deflator not an accurate measure of inflation as it impacts a household?
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In the above figure; when the economy is in a longr run equabrium, the price level will be 90 . 110. 120, 100 

Price level (GDP defiator, 2009-100
LAS
120
EX
110
100
90
130
0 15.0 15.5 16.0 16.5 170 175
Real ODP ilions of 2009 dollar)
090.
In the above figure, when the economy is in a long-run equilibrium, the price level will be
O 110.
SAS
O 120,
AD
Ⓒ100
Transcribed Image Text:Price level (GDP defiator, 2009-100 LAS 120 EX 110 100 90 130 0 15.0 15.5 16.0 16.5 170 175 Real ODP ilions of 2009 dollar) 090. In the above figure, when the economy is in a long-run equilibrium, the price level will be O 110. SAS O 120, AD Ⓒ100
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