In 2001, the economy of Boxtown had an aggregate demand and aggregate supply according to the following schedule: price level aggregate demand short-run aggregate supply long-run aggregate supply 70 $1275 $1005 $1300 80 $1250 $1070 $1300 90 $1225 $1135 $1300 100 $1200 $1200 $1300 110 $1175 $1265 $1300 120 $1150 $1330 $1300 130 $1125 $1395 $1300 What was Boxtown’s short-run equilibrium output in 2001? If Boxtown cut taxes, how would short-run equilibrium quantity change?Increase/Decrease

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