Price Level 20,35,50,85,110,135
Real GDP demanded(in billions) 100, 75,55,25,15,10
Real GDP supplied ( in billions) 20,40,55,85,105,120
1) i. Using the information provided, plotanddrawthe Aggregate Demand and Aggregate Supply curves by hand. Insert your drawing below.
ii. Identify and show the macroeconomic equilibrium on your drawing from part i.
iii. Assume potential GDP is at $63 Billion. Illustrate the potential GDP on your drawing from part i. Is there an inflationary or recessionary gap? Explain why.