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Suppose that the economy is depicted in the graph to the right. + a. The current equilibrium price level and output level respectively are: and

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Suppose that the economy is depicted in the graph to the right. + a. The current equilibrium price level and output level respectively are: and 160- $ trillion. (Enter your response as a whole number.) 150- LRAS SRAS 140- b. Using the line drawing tool, show a change in aggregate demand that leads to 130- an inflationary gap. Use the line drawing tool and label this new line 'AD,'. 120- Carefully follow the instructions above, and only draw the required objects. 110- Price level 100- 90-.... 80 70- 60- AD 50- 40-+ 2 4 6 8 10 12 14 16 18 20 Real GDP ($ trillions)

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