Macroeconomic

Question 1

GDP Economic growth = (formula)

What can be interpretaded about excess is GDP growth (In excess of inputs in Labor and capital)

Answer 1

Growth in labor force + Growth in productivity

2. Rely on Increase in total factor produtivity

Question 2

Graph of SRAS , Long Run AS, And AD

Answer 2

draw it with:
LRAS = GDP = vertical line
SRAS = upward slope curve
VeryShortRun AS = Horizontal Dotted line
AD = Regular demand curve, downward sloping (More quantitie, less price)

Question 3

GDP and:
Full employment
Inflationary
Recession

Answer 3

Full employment - GDP potential (Long run AS) = GDP Real

Inflationary = GDP Real > GDP Potential

Recession = GDP Real < GDP Potencial

Question 4

Fisher effect =
(nominal rate)

Answer 4

Real rate + expected inflation