Consider the information in the following table:

a. Explain the changes that occurred between 2008 and 2010.

b. Draw a dynamic aggregate demand and aggregate supply graph to illustrate what happened between 2008 and 2010. Your graph should contain the AD, SRAS, and LRAS curves and indicate the short-run macroeconomic equilibrium and directions in which the curves shifted.

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Year Actual Real GDP 2008 $14.83 trillion 2009 14.41 trillion 2010 15.59 trillion Potential GDP Price Level $15.81 trillion 215.3 16.04 trillion 214.5 16.26 trillion 218.1