2. The Phillips curve In the short run and long run In the year 2023, aggregate demand and aggregate supply In the fictional country of Demet are represented by the curves ALboot and AS on the following graph. Suppose the natural level of output In this economy Is $7 trillion. Do the following graph, use the green line (triangle symbol) to plot the long-fun aggregate supply (LRAS) curve for this economy. Correct Anwar Tour Answer LRAB Outcome C PRICE LEVA AP 2:2 OUTPUT (Trillions of dollars) Points: 0.3/1 Explanation: Close Explanation The long-run aggregate supply curve Is a vertical line at the natural level of output. Therefore, In this case, you should have drawn a vertical line at $7 brillian. Economists have forecast that if the government does nothing and the economy continues to grow at the current rate, aggregate demand In 2024 will be given by the AD: curve, resulting In the outcome Illustrated by point A. If the government pursues = contractionary policy, aggregate demand In 2024 will be given by the AL' curve, resulting In the outcome illustrated by point B