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Suppose that the economy is depicted in the graph.

Suppose that the economy is depicted in the graph.

a. The current equilibrium price level and output level respectively​ are: 80 and ​$9 trillion.

b. Using the line drawing tool​, show a change in aggregate demand that leads to an inflationary gap. Use the line drawing tool and label this new line ​’AD1​‘.

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Carefully follow the instructions​ above, and only draw the required objects.  

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IMG_5657 2.JPG

IMG_5657 2.JPG

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