Problem
In the diagram for this exercise, use aggregate demand and short-run and long-run aggregate supply curves to show an economy at a short-run equilibrium with a contractionary gap of $0.5 trillion when potential output is $10 trillion. Then illustrate how the gap would close in the long run if the economy is self-correcting.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.