2. Assume that the potential GDP in the economy of Summer Fell is $900 Billion and that the aggregate demand and aggregate supply are as shown below: Aggregate Demand Price Index Aggregate Supply 1100 90 750 1000 100 825 900 110 900 800 120 975 700 130 1050 600 140 1125 al What is the value of equilibrium GDP and the price level? What type of macroeconomic equilibrium exists? (5) b) Suppose that a dragon flies over Summer Fell, destroying the factories and causing $175 Billion wort of damage. What will be the new values of equilibrium GDP and the price level? (5) c) What type of gap now exists and what is its size? (5) d) Draw a diagram to support your