6. Aggregate Supply and Aggregate Demand (14 points)

Price Real GDP Supplied Real GDP Demanded

$ 600 5000 21000

$1200 10000 18000

$1800 15000 15000

$2400 15000 12000

Complete parts a, b, and c.

a. Plot the aggregate supply and aggregate demand curves on the same graph.

b. State the equilibrium real GDP and price level.

c. At the equilibrium GDP from part b, is the economy experiencing a recessionary

gap? Explain why it is or is not experiencing a recessionary gap.