Point X shows how much is lost to depreciation each year….

  Point X shows how much is lost to depreciation each year. In 3-5 sentences, explain:  If we are producing at point P, do we have a GDP gap? How do you know? What will happen to the graph over time and why does this happen? What would happen to the Phillips Curve as this occurs?   Explain your answer to all of these questions to receive full credit.