The table below shows data for five economies of similar size. Real GDP is measured in billions of dollars. Assume that potential output for each economy is $340 billion. 
TABLE 24-1
-Suppose that the economy is initially in a long-run macroeconomic equilibrium. A shock then hits the economy and we observe that the unemployment rate decreases and the price level decreases. We can conclude that
Has increased and there is now an) gap.
Definitions:
Deed of Trust
A document that conveys title to real property to a trustee as security for a loan until the grantor (borrower) pays the lender according to the terms of a loan.
Mortgage
A loan secured by the collateral of real estate property, where the borrower is obliged to pay back with a predetermined set of payments.
Trustee
A person or firm that holds and administers property or assets for the benefit of a third party.
Creditor
An individual or institution to whom money is owed.
Q35: Which of the following examples constitutes a
Q44: Refer to Figure 23-5. Suppose that an
Q56: The net export NX) function crosses the
Q61: Suppose the government implements a permanent reduction
Q97: Consider a simple macro model with a
Q105: In any decision about stimulating the economy
Q106: Suppose Bank ABC has a target reserve
Q116: Consider the following news headline: ʺGovernments plan
Q127: If the economyʹs AS curve is vertical,
Q129: Refer to Figure 23-5. Suppose that an