The AS/AD Model 250 Price Ley 225 200 175 Price Level 150 125 100 500 1000 1500 2000 2500 Real GDP (in billions) Price Real GDP Price Real GDP What happens to Real GDP Demanded Level Demanded Level Supplied as price levels rise? Why? (AD1) (AS1) 100 1100 125 0 Use the data to plot the line. Label it AD1. 125 1000 125 500 150 900 125 1000 Use the data to plot the amount this 175 800 150 economy can produce (it's productive 1400 capacity). Label it AS1. 200 700 175 1600 225 600 200 1700 Analyze the data on GDP Supplied. What is the maximum output this country can 250 500 225 1700 produce? 250 1700