Year Potential Real GDP Real GDP Price Level 1 $10.2 trillion $10.2 trillion 100 2 10.8 trillion 10.6 trillion 103 3) The economy is in the state described by the table above. Draw the dynamic aggregate demand and aggregate supply diagram to illustrate the state of the economy in year 1 and year 2, assuming that no policy is pursued. Then illustrate and explain the appropriate fiscal policy to use in this situation. Assume that the policy results in the economy producing potential GDP.