Suppose the relationship between real GDP and inflation is depicted as shown in the table below. Assume that real and potential GDP are equal to each other at $5,400 billion. Suppose government purchases decline by $100 billion and the slope of the aggregate expenditure line is 0.5. 
Definitions:
Chemical Reactions
Processes in which substances interact to form new compounds with different chemical properties.
Fatty Acid
Molecule that contains a hydrocarbon chain and ends with an acid group.
Amino Acid
Organic compounds that combine to form proteins, serving as the building blocks of protein synthesis and playing vital roles in processes such as neurotransmitter transport and biosynthesis.
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