Price level (GDP price index, 2012 = 100) 140 130 120 110 105 100 90 90 0 19 Potential GDP AD 20 21 AS 22 Real GDP (trillions of 2012 dollars) The figure above shows a nation's aggregate demand curve, aggregate supply curve, and potential GDP. In the figure above, the. gap is one trillion dollars. To close the gap, the government can change expenditure by one trillion dollars. recessionary; more than O recessionary; exactly O recessionary; less than O inflationary; more than
Price level (GDP price index, 2012 = 100) 140 130 120 110 105 100 90 90 0 19 Potential GDP AD 20 21 AS 22 Real GDP (trillions of 2012 dollars) The figure above shows a nation's aggregate demand curve, aggregate supply curve, and potential GDP. In the figure above, the. gap is one trillion dollars. To close the gap, the government can change expenditure by one trillion dollars. recessionary; more than O recessionary; exactly O recessionary; less than O inflationary; more than
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no

Transcribed Image Text:Price level (GDP price index, 2012 = 100)
140
130
120
110
105
100
90
90
0
19
Potential
GDP
AD
20
21
AS
22
Real GDP (trillions of 2012 dollars)
The figure above shows a nation's aggregate demand curve,
aggregate supply curve, and potential GDP.
In the figure above, the.
gap is one trillion dollars. To close
the gap, the government can change expenditure by
one
trillion dollars.
recessionary; more than
O recessionary; exactly
O recessionary; less than
O inflationary; more than
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