Question: 1. Draw your x axis and y axis. Label the x axis Real GDP and the y axis Price level. 2. Plot AD on your

1. Draw your x axis and y axis. Label the x axis "Real GDP" and the y axis "Price level".

2. Plot AD on your graph using the values for price level and aggregate demand on the chart.

3. Plot AS on your graph using the values for price level andaggregate supplyon the chart.

4. Find the equilibrium by determining where AD and AS intersectin this case, our equilibrium is at a price level of 130 and real GDP of $680.

5. Draw conclusions from the given information.

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