Some events change aggregate supply from SAS0 to SAS1 Describe two events that could have created this change in aggregate supply. What is the equilibrium after aggregate supply changed? If potential GDP is $1,000 billion, does the economy have an inflationary gap, a recessionary gap, or no output gap?

Initially, the short-run aggregate supply curve is SAS0 and the aggregate demand curve is AD0.

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LAS SAS 115 SASo 105 100 ADI 95 ADo 800 1,000 200 Real GDP (billions of 2002 dollars