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Quiz 4, Part D i Saved The graph below shows the economy of Ukatria, which is in equilibrium. - Potential GDP = LAS AD 124 AS 120 116 112 Price index 108 104 100 96 0 200 400 600 800 1000 1200 1400 Real GDP (billions of dollars) a. What are the present levels of real GDP and price index? GDP: $ 600 billion; Price Index: 108 b. By how much must aggregate demand Increase to return the economy to full employment? Increase of $ 200 billion c. If aggregate demand is increased by the amount in (b), what will be the new levels of real GDP and price Index? GDP: $ 800 billion; Price Index: 104 d. Would using policies to increase aggregate demand be Keynesian or neoclassical? Keynesian