Let Y = 11,000 - 10P represent an aggregate demand curve. If potential GDP were $10,000, the price level that would produce aggregate demand just supporting that potential would be

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To find the price level that would produce an aggregate demand equal to the potential GDP of $10,000, we can set Y equal to 10,000 and solve for P in the equation Y = 11,000 - 10P. This gives us 10,000 = 11,000 - 10P, which simplifies to 1,000 = 10P, and further to P = 100.

Let Y = 11,000 - 10P Represent an Aggregate Demand