During the last two years there has been a depletion of groundwater in the nation because of a severe drought in the country. 1. Which of the two graphs above is correct? Explain why. 2. What happened to real GDP in the selected graph? Why? 3. What happened to the price level in the selected graph? Why? 4. What happened to aggregate demand and aggregate supply Why?

Question
During the last two years there has been a depletion of groundwater in the
nation because of a severe drought in the country.
1. Which of the two graphs above is correct? Explain why.
2. What happened to real GDP in the selected graph? Why?
3. What happened to the price level in the selected graph? Why?
4. What happened to aggregate demand and aggregate supply Why?

Image Transcription

During the last two years there has been a depletion of groundwater in the nation because of a severe drought in the country. 1. Which of the two graphs above is correct? Explain why. 2. What happened to real GDP in the selected graph? Why? 3. What happened to the price level in the selected graph? Why? 4. What happened to aggregate demand and aggregate supply Why?

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Aggregate Supply

Aggregate Demand

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