4.1 Use the model of aggregate demand and aggregate supply (long run and short run) to explain how each of the following would affect real GDP and the price level in the short run. Include graphs in your answers.

a. An decrease in government purchases

b. A major improvement in technology

c. A reduction in net exports

4.2 The GDP growth rate of Country Gamma is 4%. How long will it take for the country to double its GDP level?