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. 
(A)Explain how the AD curve is affected by this change.In the short run,what will real GDP and the rate of inflation be?
(B)Using the AD and IA curves,show what will happen in the medium run.Be sure to give an economic explanation for what is happening.
(C)Using the AD and IA curves,show what will happen in the long run.
Definitions:
Subordinates
Employees or team members who are ranked lower in the organizational hierarchy and are usually subject to the authority of a supervisor.
Decision-making Process
A series of steps that individuals or groups follow to evaluate options and choose from among alternatives for actions or resolutions.
Organizational Objectives
The specific, measurable goals that a company aims to achieve in order to fulfill its mission and drive its vision forward.
Overall Goals
General objectives that an organization or individual aims to achieve in the long term.
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