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Sagot :
Answer:
attached below
Explanation:
Given that the economy has its actual GDP > potential GDP
A) using AD-AS to depict the situation
attached below is the graph
The gap( Lf - L1 ) is called inflationary gap
x-axis = real GDP , Y-axis = price level,
AD = aggregate demand curve , S = short run aggregate supply curve
L = long run aggregate supply curve,
B) In the long run the graph will adjust to the full employment level
attached below is the graph

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