Price Level Aggregate Quantity Demanded Aggregate Quantity Supplied 90 820 400 92 790 480 94 760 540 96 730 580 98 700 610 100 670 640 102 640 670 104 610 680 106 580 700 108 550 715 a. The diagram is attached in the explanation area. b. There is a shortage of 90 units. c. Equilibrium price is 101 and equilibrium real GDP is 650. e d. The equilibrium price tells the price at which the demand of the consumers meets the supply of the produ e. There is a recessionary gap. f. The diagram is attached in the explanation area. 110 108 106 104 102 100 98 96 88 0 100 200 300 400 500 600 700 800 900 Aggregate Quantity demanded -Aggregate Quantity supplied g. There is a recessionary gap of 50 H On the graph, show how a Keynesian p. Explain how this would work in the space below. I Redraw AD, AS, and potential GDP on the graph below. IIIII Ria Led J On the second graph, show how a Supply Sider would close the gap. Explain how this would work in the space below. K Redraw AD, AS, and potential GDP on the graph below. Tice leve Suppose that households import $110 more of goods regardless of income. Will this change AD, AS, or potential GDP? M Show this change on your third graph What is the equilibrium price level and real GDP? Is the economy in a recessionary gap, expansionary gap, or full employment equilibrium? P If there is a gap, how big is it