Can I get a small explanation on how to solve the following question.
Consider the following schedule. If the potential GDP is at 12.0, what can youconclude about price levels and the unemployment rate? Current Price Real GDP-quantity demanded Real GDP-quantity suppliedper trillion per trillion m The economy has high unemployment but experiences stable price levels becausethe economy operates below the potential GDP. (7. The economy has stable price levels and low unemployment because it is operatingabove the potential GDP. (j. The economy is experiencing rising price levels and has a low unemployment ratebecause it is operating above the potential GDP.
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