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Help with graphs The economy of Chicagoland is currently producing $65 Million worth of goods and services (current real GDP). Full employment output for lChicagolantl
Help with graphs
The economy of Chicagoland is currently producing $65 Million worth of goods and services (current real GDP). Full employment output for lChicagolantl is $15 Million worth of goods and services (full employment real GDP]. The price level has been declining recently. This has occun'ed due to a negative AD shock. I. Use an ADIAS graph to Sl'lD-W the macroeconomy of Clucagoland. Label the graph correctly. a. First, shovir the long run equilibrium of Chicagoland using aggregate demand {AD} and short run aggregate supply (ERAS) at ill employment. Label the full employment output 1'; and the corresponding price level, PL. h. Then, use Y1 to represent the current real GDP and PLl to represent the current price level. 2. Draw a graph of the money market. Use M1 to represent the current money supply and il to represent the current interest rate. Show the effect on the money market of the open market operation you specied in #4. Be sure to show the change in the money supply and the change in the interest rate as a result of the shift in the money supplyStep by Step Solution
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