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Assume that at the start of the recession in 2007, real GDP was $16 trillion, and $12 trillion by 2008, but that the price level
Assume that at the start of the recession in 2007, real GDP was $16 trillion, and $12 trillion by 2008, but that the price level remained the same. On the aggregate demand-aggregate supply diagram below, use the drag tool to illustrate what occurred during the Great Recession given the two causes listed above. To refer to the graphing tutorial for this question type, please click here. Price level 16 AD?AS 15 AD LRAS SAS 14 13 12 11 10 888 real GDP in trillions)
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