Explain what will happen to the aggregate demand curve and real GDP in each of the following cases.
Definitions:
Producer Surplus
The extra benefit or profit that producers make when they sell a product for more than the minimum price they were willing to accept.
Phantom Tickets
Tickets for an event that are sold but are either nonexistent or vastly oversold, often associated with fraudulent or speculative selling practices.
Minimum Price
The lowest legal price at which a good or service can be sold, often set to ensure producers can cover their costs.
Total Producer Surplus
The difference between the total revenue that producers receive and the minimum amount they would be willing to accept for their goods or services.
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