Find the solution for this execrise:

The economy of Ficticiousland has demand and supply schedules as follow:

Price Level (CPI)Aggregate Demand

Short-run aggregate supply

Price Level (CPI) Aggregate Demand Short-run aggregate supply

250 4 16

200 8 12

150 12 8

100 16 4

Reflecting GDP in trillions of dollars

Please submit the answer for the following exercises, show your work.

1. Graph the aggregate demand curve and the short run aggregate supply curve

2. What are short-run equilibrium real GDP and the price level?

3. If Ficticiousland's potential real GDP is $12 trillion, plot the long-run aggregate supply curve (LRAS) in the graph.