Question 1 The aggregate demand and supply for Cancum are shown in the table below. Potential GDP (LAS) is $1,300 billion. Price Index Aggregate Quantity Aggregate Quantity Demanded Supplied 105 1,400 350 110 1,300 700 115 1,200 900 120 1,100 1,100 125 1,000 1,200 130 900 1,300 135 800 1,400 140 700 1,450 a. If the economy is in equilibrium, it is experiencing a(n] gap of $ b. Suppose government uses countercyclical fiscal policy to close the gap. In order to achieve full employment AD would have to by 5 C. As a result of this change, the inflation rate would be