3. Suppose the aggregate demand and supply schedules for a hypothetical economy are as shown below. ( 20 points) New real domestic Amount of real domestic output demanded, output demanded, bons bons $60 120 180 240 300 Price level (price index) 350 300 250 200 150 Amount of real domestic output supplied, billions $240 200 180 120 60 (a)What will be the equilibrium price and output level in this hypothetical economy? Provide a graph to support your answer. (b)Why won't the 200 index be the equilibrium price level? Why won't the 300 index be the equilibrium price level? (c)Suppose demand decreases by $120 billion at each price level. What will be the new equilibrium price and output levels? Provide a graph revealing the new equilibrium. Is this a recession or inflation