Assignment 3 (Chapter 5) 5. Assume that the potential GDP of the economy of Arion is $1,600, and that the aggregate demand and aggregate supply are as shown in the following table. Aggregate Aggregate Quantity Quantity Demanded 1 Aggregate Quantity Demanded 2 Price Index Supplied $1,800 96 $1,400 1,750 97 1,450 1,700 98 1,500 1,650 99 1,550 1,600 100 1,600 1,550 101 1,650 1,500 102 1,700 1,450 103 1,740 1,400 104 1,780 1,350 105 1,820 a. The value of equilibrium real GDP is and the price level is There is | (Click to select) gap. The gap is equal to $ b. If firms become more optimistic and aggregate demand increases by $100, complete the aggregate demand 2 column in the table above. c. The new value of equilibrium real GDP is and the price level is now d. There is (Click to select) gap. The gap is equal to $1