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The table below shows the aggregate demand for the economy of Itera. Its potential GDP (LAS) is $750. Price Index Aggregate Quantity Demanded 70 750
The table below shows the aggregate demand for the economy of Itera. Its potential GDP (LAS) is $750.
Price Index | Aggregate Quantity Demanded |
70 | 750 |
90 | 700 |
110 | 650 |
130 | 600 |
a. Draw the aggregate demand curve and the potential GDP (LAS) curve in the graphing area below. Plot only the endpoints of each curve in the graphing area using the appropriate tool. Once all points have been plotted, click on the line (not individual points) and a tool icon will pop up. You can use this to enter exact co-ordinates for your points as needed.
O Aggregate Demand for the economy of Itera AS 130 Tools 120 AD Potential GDP 110 100 AD2 Price Index 90 80 70 400 500 600 700 800 900 1000 Real GDPStep by Step Solution
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