Using the diagram on the right with AD determine the following: a. equilibrium price level= b. equilibrium real GDP produced= c. unemployment rate equals the natural rate Price level measured by price index 2. If Aggregate Demand falls to AD a. temporary new price level b. temporary real GDP produced c. unemployment rate is greater than natural rate d. Assuming the Government ignores the existence of the Recession and high unemployment and laborers compete for existing jobs by agreeing to work for a lower Money Wage explain the effect on (1) SRAS (2) Price level (3) Real GDP produced 110 107 104 0 LRAS $19 T $20 T SRAS AD AD T is an abbreviation for trillions aggregate output measured by real GDP