(Solved): Refer to the table below. Suppose that aggregate demand increases such that the amount of real out ...

Refer to the table below. Suppose that aggregate demand increases such that the amount of real output demanded rises by \( \$ 7 \) billion at each price level. Instructions: Enter your answers as a whole number. a. By what percentage will the price level increase? percent Will this inflation be demand-pull inflation, or will it be cost-push inflation? b. If potential real GDP (that is, full-employment GDP) is \( \$ 510 \) billion, what will be the size of the positive GDP gap after the change in aggregate demand? \$ billion c. If government wants to use fiscal policy to counter the resulting inflation without changing tax rates, would it increase government spending or decrease it?