The graph shows an economy's aggregate supply and potential GDP. On the graph, draw an aggregate demand curve when the economy is at an above full-employment equilibrium. Label it AD. Draw a point at the above full-employment equilibrium. Draw a horizontal arrow at the equilibrium price level that shows the gap between actual real GDP and potential GDP. >>> Draw only the objects specified in the question. 140- 130- 120- 110- 100- 90- 80+ Price level (GDP price index, 2012=100) 1.8 1.9 Potential GDP 2.0 Real GDP (trillions of 2012 dollars) 2.1 AS 2.2
The graph shows an economy's aggregate supply and potential GDP. On the graph, draw an aggregate demand curve when the economy is at an above full-employment equilibrium. Label it AD. Draw a point at the above full-employment equilibrium. Draw a horizontal arrow at the equilibrium price level that shows the gap between actual real GDP and potential GDP. >>> Draw only the objects specified in the question. 140- 130- 120- 110- 100- 90- 80+ Price level (GDP price index, 2012=100) 1.8 1.9 Potential GDP 2.0 Real GDP (trillions of 2012 dollars) 2.1 AS 2.2
Chapter5: Introduction To Macroeconomics
Section: Chapter Questions
Problem 4.6P
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Question
The graph shows an economy's aggregate supply and potential GDP .
On the graph, draw an aggregate demand curve when the economy is at an above full-employment equilibrium. Label it
AD
.
Draw a point at the above full-employment equilibrium.
Draw a horizontal arrow
at the equilibrium price level
that shows the gap between actual real GDP and potential GDP.
>>>
Draw only the objects specified in the
question.
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