6. Draw the Aggregate Demand and Aggregate Supply curves for an economy and label the diagram. What is meant by Potential GDP (LongRun Aggregate Supply)? Draw the Long Run Aggregate Supply if there is a recessionary gap. ANS: 7. Explain how you could get an increase in LongRun AS (Potential GDP)? ANS: 8. What does RGDP mean? Why do we need to use RGDP to monitor economic growth? ANS: 9. Use an ADIAS model to show What happens if there is a) a decrease in consumption spending b) a decrease in the HST c) an incentive for businesses to increase labour productivity d) a decrease in interest rates e) an increase in government spending ANS: 10.Ideutify three leakages in the Canadian economy. ANS