Problem
1. If the long-run aggregate supply curve gives the level of potential real GDP, how can the short-run aggregate supply curve ever lie to the right of the long-run aggregate supply curve?
2. During the Great Depression, the U.S. economy experienced a falling price level and declining real GDP. Using an aggregate demand and aggregate supply diagram, illustrate and explain how this could occur.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.