Aggregate demand and long run aggregate supply curves

Reference no: EM13134967

Suppose that the aggregate demand curve in a particular year is given by the algebraic expression: Y = 3000 + 1000/P, where Y is the aggregate output and P is the price level as given by the GDP Deflator. Potential GDP (Y^*)= 4000.

a. Plot aggregate demand and long run aggregate supply curves. Show aggregate demand schedule.

Reference no: EM13134967

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