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The economy of Carlsberg is presently in equilibrium, but is suffering a recession as depicted in the graph below. The central bank of Carlsberg is

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The economy of Carlsberg is presently in equilibrium, but is suffering a recession as depicted in the graph below. The central bank of Carlsberg is introducing an expansionary monetary policy to get the economy back to the fullemployment level of real GDP. 6) 160 140 E _____________ :_______ a 120 ------------- +- E l ._ | ' w I I 2 : g E 100 : I I l I I I I l I 30 l l I l I I l l { Q 380 390 400 410 420 430 440 Real GDP (in billions) a. What increase in aggregate demand is necessary to achieve this? $ billions. b. If successful, what will be the growth rate? Round your answer below to 2 decimal places. :96 c. If successful, what will be the inflation rate? Round your answer below to 2 decimal places. :96

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