use an aggregate demand and supply diagram to illustrate and explain how much each of the following affect the equilibrium price level and the real GDP. Describe and analyse the new situation (inflationary gap, recessionary gap, stagflation). How should the situation be rectified in order to return to full employment? (1) consumer expect a recession, (2) foreign income rises., (3) foreign prices fall, (4) government spending increases (5) workers expect high future inflation and negotiate higher prices now ,(6) technological improvement increase productivity