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Can you assist? 130 125 120 115 110 Price level 105 100 95 90 85 80 0 50 100 150 200 250 300 350 400

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130 125 120 115 110 Price level 105 100 95 90 85 80 0 50 100 150 200 250 300 350 400 450 500 Real GDP The graph above shows the aggregate demand for the economy of Bachland. Its potential GDP (LAS) Is.$350. According to neoclassical theory: a. If the price level is 95, is the economy of Bachland currently in equilibrium? If not, what might happen? (Click to select) v , the price level [(Click to select) v to b. If, Instead, the economy of Bachland were in equilibrium, what would happen to the GDP and the price level if aggregate demand were to Increase by $50? (Click to select) v, and the price level [(Click to select) v to According to Keynesian theory: c. If the present price level is 95 and the economy of Bachland is In equilibrium, what is the level of real GDP? Real GDP: $ d. If the economy of Bachland were In equilibrium at a price level of 95, what would happen to the GDP and the price level if aggregate demand were to Increase by $50? GDP rises to $ and the price level [(Click to select) v

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