20. If the CPI in 2007 was 114.7 and the CPI in 2008 was 124.5, calculate the rate of inflation between 2007 and 2008. (1 marks) Use the adjacent figure and the information provided to answer the following three questions. Initially, the aggregate supply is ASo and aggregate demand is ADo. 21. Some events change aggregate demand from ADo to AD1. Describe two events that could have FIGURE 19.2 created this change in aggregate demand. What Chapter Checkpoint Problems 7 to 9 is the equilibrium after aggregate demand Price level (GDP price index, 2005 = 100) changed? If potential GDP is $1 trillion, the economy is at what the type of macroeconomic AS equilibrium? (3 marks) 115 22. Some events change aggregate supply from AS, 1 10 to AS1. Describe two events that could have created this change in aggregate supply. What is 105 the equilibrium after aggregate supply changed? If potential GDP is $1 trillion, does the economy 100 have an inflationary gap, a recessionary gap, or AD no output gap? (2 marks) 95 23. Some events change aggregate demand from ADS ADO to AD, and aggregate supply from AS, to 0.B 1.0 1.2 AS1. State what the new macroeconomic Real GDP (trillions of 2005 dollars) equilibrium is and explain how the new equilibrium is reached? (2 marks)