Question 15

Suppose that the economy is depicted in the graph to the right. a. The equilibrium price level and real GDP in this economy are respectively A. $80; $10 trillion. . Bl] trillion; 10. . Bl]; $10 trillion, . $80 trillion; $10 trillion b. Using {he iine drawing fool, Show a change in aggregate demand that leads to an inationary gap. Label this newline 'AD1'. Price level Carefully foiiow the instructions above, and only draw the required objects. D 2 45 3101214161320 Real GDP (ii ln'llipns)