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Sagot :
When equilibrium GDP is at full-employment GDP and autonomous consumption declines, firms are induced to reduce production output thus moving the level of GDP downward.
What is equilibrium GDP?
Gross domestic product (GDP) is a crucial economic metric for assessing a country's overall financial situation. It is determined by summing up the entire monetary value of all the goods and services produced in a nation over the course of a year.
Equilibrium GDP is the level of GDP at which total demand and total supply are balanced.
An economy is in a recession if its real GDP at the moment is lower than the output at full employment. An economy is in a boom if its real GDP at the moment is higher than its output at full employment. We say the economy is in long-run equilibrium if the current output is equivalent to the output at full employment. The output is not excessively high or low. It fits perfectly.
To know more about equilibrium GDP refer to: https://brainly.com/question/13122168
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