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 increases and the price level increases. We can conclude that
Has decreased and there is now an) gap.
Definitions:
Third-Party Payments
Payments made by someone other than the consumer or provider of a good or service, often by insurance companies or government agencies.
Healthcare Expenditures
The total amount of spending on health services and products in a specific period, including public and private spending.
Government
A system or group of people governing an organized community, often a state.
Federal Tax Legislation
Laws enacted by the federal government to impose taxes on individuals and businesses to finance government activities.
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