Draw and carefully describe a graph that utilizes the Aggregate Demand/Aggregate Supply model that would illustrate...

Draw and carefully describe a graph that utilizes the Aggregate Demand/Aggregate Supply model that would illustrate the current state of the aggregate economy in the United States as of October 2020. Make sure that you explain your graph in your own words. Describe the current state of the economy relative to potential GDP. draw an AD/AS graph. The graph needs to be clearly labeled and explained in some detail. The graph must include an aggregate demand (AD) curve, a short-run aggregate supply (SRAS) curve, and a long-run aggregate supply curve (LRAS, Potential GDP) curve. Clearly label both axes of the graph. Identify the current price level using the GDP deflator on the vertical axis and the level of real GDP on the horizontal axis. You don’t need to plot any other specific data points although you should identify real potential GDP (Links to an external site.) in the third quarter.

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Rahul Sunny answered 1 year ago

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