recessionary hap exist when equilibrium occurs below full employment output.
inflationary gap occurs when equilibrium occurs beyond full employment output.
u = unemployment
π = inflation
LRAS & SRAS GRAPHS
full employment equilibrium exist where AD intersects SRAS and LRAS at the same point.
recessionary hap exist when equilibrium occurs below full employment output.
inflationary gap occurs when equilibrium occurs beyond full employment output.
u = unemployment
π = inflation
recessionary hap exist when equilibrium occurs below full employment output.
inflationary gap occurs when equilibrium occurs beyond full employment output.
u = unemployment
π = inflation
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