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Price level Real GDP demanded (billions of 2009 dollars) Real GDP supplied (billions of 2009 dollars) 90 450 150 100 400 250 110 350 350

Price level

Real GDP demanded (billions of 2009 dollars)

Real GDP supplied (billions of 2009 dollars)

90

450

150

100

400

250

110

350

350

120

300

450

130

250

550

The table above shows Yellowland's economy aggregate demand and supply schedules. Yellowland's potential GDP is $300 billion.

a) Plot the aggregate demand curve, the short-run aggregate supply curve, and the long-run aggregate supply curve.

b) What are the short-run equilibrium real GDP and price level in Yellowland?

c) What is the long-run equilibrium real GDP?

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