The nation of Dodgetopia is currently experiencing a recession.

a. Draw a correctly labeled aggregate demand and aggregate supply graph that shows an economy that is experiencing a recessionary gap. Identify the current level of output as Y₁ and current price level as PL₁.

b. Identify the level of output that would exist in the long run as Y₂.

c. Assuming no government policy action is taken, describe how the economy of Dodgetopia would adjust in the long run? How would the graph you have drawn reflect this adjustment?