The figure below shows the effect of a 2001 increase in government purchases on the hypothetical path of real GDP compared to the path of potential GDP (the baseline)between 2001 and 2005. 
(A)Using the AD curve and IA line analysis,explain what is occurring between 2001 and 2002.
(B)Using the AD curve and IA line analysis,explain what is occurring between 2002 and 2004.
(C)Using the AD curve and IA line analysis,explain what is occurring between 2004 and 2005.
Definitions:
Elevates the Ribs
Refers to the action of certain muscles, such as the intercostal muscles, which increase the volume of the thoracic cavity during inhalation.
Internal Intercostals
Muscles located between the ribs that assist with the process of respiration by decreasing the volume of the thoracic cavity during exhalation.
Superior Border
The uppermost edge or boundary of an anatomical structure.
Inferior Rib
Refers to the lower ribs in the human rib cage, possibly intended to distinguish them from upper ribs but not a standard anatomical term.
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