a. If the actual price level exceeds the expected price level reflected in long term contracts, real GDP equals ____________ and the actual price level equals _________ in the short run.

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b. The situation described in part a result in a _________ gap equals to ____________. 

c. If the actual price level is lower than the expected price level reflected in long term contracts, real GDP equals __________ and the actual price level equals ________ in the short run. 

d. The situation described in part C result in a ________ gap equal to ___________ 

 


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