level of nominal GDP

level of nominal GDP

Continuing from Problem 10-2, suppose that the full-employment level of nominal GDP in the following year rises to $17.7 trillion. The long-run equilibrium price level, however, remains unchanged. By how much (in real dollars) has the long-run aggregate supply curve shifted to the right in the following year? By how much, if any, has the aggregate demand curve shifted to the right?
Problem 10-2
Suppose that the long-run aggregate supply curve is positioned at a real GDP level of $15 trillion in base-year dollars, and the long-run equilibrium price level (in index number form) is 115. What is the full-employment level of nominal GDP?

level of nominal GDP

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