You will create an Aggregate Supply and Demand graph for Years 2009-2010 (Great Recession). You will use the "Static" Aggregate Supply and Demand Model, so the LRAS will not shift. See the Footnotes for more information.

Label your graph as follows (labels in parentheses)

• a. 2009 Aggregate Demand (AD1)
• i. 2009 Price Level (PLe1)
• ii. 2009 Output (Y1)
• iii. 2010 Price Level (PLe2)
• iv. 2010 Output (Y2)
• b. 2010 Aggregate Demand (AD2)
• c. Short Run Aggregate Supply (SRAS)
• d. Long Run Aggregate Supply (LRAS)
• i. Output at Full Employment (Yf)
  

Data Set "Great Recession" of 2008-20091 Year Real GDP GDP Deflator' Potential RGDP3 2007 $15.70 89 $15.70 2008 $15.20 90.7 $15.90 2009* $15.00 90.6 $16.10 20105 $16.10 Year Inflation Rate Unemployment Rate Natural Rate 2007 4.70% 5.00% 2 2008 6.50% 5.00% 2009* -0.11% 10.00% 5.00% 20105 1.20% 7.50% 5.00% Year Federal Funds Rate Budget Deficit Debt to GDP Ratio 2007 4.76% $0.16 62.80% 2008 0.97% $0.46 73.50% 20094 0.12% $1.39 77.20% 20105 0.02% $1.61 92.00% Source: www.fred.stlouisfed. org (the data has been slightly adjusted for simplicity)