Problem
In the diagram, the aggregate supply curve is for the year 2000. Sketch an aggregate demand curve that shows the economy at an equilibrium real GDP of $9.8 trillion. Illustrate how a shift of aggregate demand could decrease the equilibrium level of real GDP to $9.5 trillion. Identify the price level for this new equilibrium.
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.