Aggregate price level The graphs illustrate an initial equilibrium for the economy. Suppose that the stock market broadly increases. Use the graphs to show the new positions of aggregate demand (AD), short-run aggregate supply (SRAS), and long-run aggregate supply (LRAS) in both the short run and the long run, as well as the short-run and long-run equilibriums resulting from this change. Then, indicate what happens to the price level and real GDP (or aggregate output) in the short run and in the long run. Short-run graph Real GDP LRAS SRAS Short-run equilibrium AD Aggregate price level Long-run graph LRAS SRAS Real GDP Long-run equilibrium AD

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