Problem
In the diagram, the aggregate demand curve is for the year 1995. Sketch in an aggregate supply curve that shows the economy at an equilibrium real GDP of $8 trillion. Identify the price level. Illustrate how a shift of aggregate supply could decrease the equilibrium level of GDP to $7.5 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.