The following graph shows a hypothetical economy in short-run equilibrium at an output level of $400 billion and a price level of 100. Suppose that potential GDP in this economy is $300 billion. Use the grey line (star symbol) to plot the long-run aggregate supply (LRAS) curve on the graph. 208 O AD 12 PRICE LEVEL Potential GOP 100 200 300 400 900 200 700 BCO REAL GOP (Billions of dollars) Based on the graph, this economy is experiencing . The size of the of the gap is s billion. An expansionary or a Split the aggregate demand (AD) curve to mustrate how pofennel outof In this economy can be restored. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. To eliminate the GOP gap in this economy, the aggregate demand curve must shift to the by $ billion at each price level. Right or left Suppose that each $100 increase in disposable income causes consumption spending in the economy to rise by $75. The economy's marginal _5, 1.33 4. 2.50 propensity to consume (MPC) is 7, which means that the oversimplified multiplier for this economy is and the shit in the aggregate demand curve required to restore the potential GDP level would occur if investment spending by 0.20, 0.40, 0.25, or 0.75 Decreases or increasess 1008, $506, $8008, $2008