Homework 2 ECO 1000, Fall 2013 Due: 12:50 PM, October 31. Total Points: 25 Be as precise and specific as possible, but do not miss important aspects/features. Pay special attention while drawing the graphs, so that they are illustrative, and are to the scale, wherever relevant. Q.1. (10 Points). Above graph depicts an inflationary gap in the economy (a situation where the current equilibrium level output is above the potential level output). Discuss the various ways (including an appropriate…
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