Question: Please help, thank you! 2) a) Does the figure to the left illustrate a contractionary LAS SAS 130 gap or an expansionary gap? 120 b)

Please help, thank you!

Please help, thank you! 2) a) Does the figure to the left

2) a) Does the figure to the left illustrate a contractionary LAS SAS 130 gap or an expansionary gap? 120 b) Determine the value of potential GDP and real GDP. 110 Price level (GDP deflator, 2000 = 100) 100 c) Is it an above full-employment equilibrium or below full-employment equilibrium? 90 AD d) Is the unemployment rate above or below the 9.5 10 10.5 11 11.5 natural rate of unemployment? Real GDP (trillions of 2000 dollars) e) If the economy corrects itself in the LR, draw the correction on the graph and determine the new price level

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