The following graph depicts a macro equilibrium. Answer the questions based on the information in the graph. (a) What is the equilibrium rate ofGDP? (b) If full-employment real GDP is $1200, what problem does this economy have? (c) How large is the real GDP gap? (d) lfthc multiplier were equal to 4, how much additional investment would be needed to increase aggregate demand by the amount of the initial GDP gap? (e) Illustrate the changes in autonomous investment and induced consumption that occur in (d). (f) What happens to prices when aggregate demand increases by the amount of the initial GDP gap? (g) Is rll employment restored by the AD shift? aloe :5 are \"It: mu tumo- a-n . not? a no: m Ho am two tam law IEMWtuunww-n Chapter 17 1. Suppose the consumption function is C = $400 billion + 0.8Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices increase with each of the following options? (a) A $50 billion increase in government purchases (b) A $50 billion increase in income transfers