Year
2020
2021
Potential Real GDP
$19.2 trillion
19.8 trillion
Real GDP
$19.2 trillion
19.6 trillion
Price Level
154
156
Refer to Table Suppose the table above illustrates the values of real and potential GDP and the price level if the Fed did not vote
to change their current policy to be more contractionary or expansionary. Suppose that the Fed used an appropriate policy and was
successful in keeping real GDP at potential in 2021. Draw an aggregate demand and supply curve to illustrate your answer.