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

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter5: Introduction To Macroeconomics
Section: Chapter Questions
Problem 4.6P
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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.
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)
Select
Line
Double
Arrow
Point
2.1
AS
2.2
Transcribed Image Text: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) Select Line Double Arrow Point 2.1 AS 2.2
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