14 Refer to the table below Real Output Demanded Original illions 3406 503 STO 517 Real Output Supplied Billions 3515 Price level 116 100 100 92 510 500 Suppose that aggregate demand increases such that the amount of real output demanded rises by S19 billion at each price level Instructions: Enter your answers as a whole number a. By what percentage will the price level increase? percent Will this inflation be demand-pull inflation, or will be cost push inflation? (Click to select) b. If potential real GDP (that is, full-employment GDP) is 5510 billion, what will be the size of the positive GDP gap after the change in aggregate demand? billion c. If government wants to use fiscal policy to counter the resulting inflation without changing tax rates, would it increase government spending or decrease it? (Click to select) 14 Refer to the table below Real Output Demanded Original illions 3406 503 STO 517 Real Output Supplied Billions 3515 Price level 116 100 100 92 510 500 Suppose that aggregate demand increases such that the amount of real output demanded rises by S19 billion at each price level Instructions: Enter your answers as a whole number a. By what percentage will the price level increase? percent Will this inflation be demand-pull inflation, or will be cost push inflation? (Click to select) b. If potential real GDP (that is, full-employment GDP) is 5510 billion, what will be the size of the positive GDP gap after the change in aggregate demand? billion c. If government wants to use fiscal policy to counter the resulting inflation without changing tax rates, would it increase government spending or decrease it? (Click to select)