Economics Real GDP Price level demanded Real GDP (billions of 2009 supplied (billions dollars) of 2009 dollars) 70 825 375 80 750 450 90 675 525 100 600 600 110 525 675 120 450 750 130 375 825 140 300 900 The table above shows Purpleland's economy aggregate demand and supply schedules. Purpleland's potential GDP is $675 billion. 1. In a short-run equilibrium, which is the value of real GDP and price level in Purpleland? 2. What is the value of the long-run equilibrium real GDP? 3. Is Purpleland's short-run equilibrium a full-employment equilibrium, below full-employment equilibrium, or above full-employment equilibrium? At this short-run equilibrium, does Purpleland have an output gap, if any, which type, a recessionary gap or an inflationary gap, and how much is this gap? Please briefly explain. 4. Suppose aggregate demand increases by $150 billion (hint: AD shifts by $150 billion horizontally.) What are the new equilibrium real GDP and the price level in the short run? 5. Is Purpleland's new short-run macroeconomic equilibrium a full- employment equilibrium, below full-employment equilibrium, or above full-employment equilibrium? At this new short-run equilibrium, does Purpleland have an output gap, if any, which type, a recessionary gap or an inflationary gap, and how much is this gap