Consider the figure to the right. Discuss a policy action that the Bank of Canada could undertake to bring V about an increase in aggregate demand sufficient to eliminate the recessionary gap. The recessionary gap in the figure is $ trillion. (Enter your response rounded to two decimal places.) LRAS SRAS 1.) Using the line drawing tool, draw a new aggregate demand curve that is consistent with the elimination of the recessionary gap. Label this line "AD,." 2.) Using the point drawing tool, indicate the new equilibrium price and level of real GDP. Label this point "E2- Price Level Carefully follow the instructions above, and draw only the required objects. 121 To generate the required increase in aggregate demand, the Bank of Canada would have to D existing bonds to their supply in the private marketplace, thereby inducing a in the price of bonds, a in the interest rate, and in the quantity of money in circulation. 2.12: 2.20 AD1 Real GDP per Year ($ trillions)