economy is in the long-run macroeconomic equilibrium, there is no unemployment? True or false? Explain (1 point)
4. Suppose the following table illustrates the values of actual Real GDP (Y), the potential Real GDP (Y*), and the price level in year 2020 and year 2021. Assume the NRU = 5%
3. Explain and illustrate graphically how an increase in crude oil prices can cause recession. (Assume that initially the economy is in the long-run macroeconomic equilibrium, then the increase in the crude oil price takes place).