In the graph, the economy is in long-run equilibrium at point A. LRAS, SRAS, Now, assume that there is an unexpected increase in the price of oil. 1.) Use the line drawing tool to show the resulting short-run equilibrium on your diagram. Label any new aggregate demand or aggregate supply curve as AD2 SRAS, or LRAS2 as appropriate. 2.) Use the point drawing tool to locate the new short- run equilibrium point. Label this point B. Carefully follow the instructions above, and only draw the required objects. AD1 Real GDP (trillions of 2012 dollars) Price level (GDP Deflator, 2012 = 100)
In the graph, the economy is in long-run equilibrium at point A. LRAS, SRAS, Now, assume that there is an unexpected increase in the price of oil. 1.) Use the line drawing tool to show the resulting short-run equilibrium on your diagram. Label any new aggregate demand or aggregate supply curve as AD2 SRAS, or LRAS2 as appropriate. 2.) Use the point drawing tool to locate the new short- run equilibrium point. Label this point B. Carefully follow the instructions above, and only draw the required objects. AD1 Real GDP (trillions of 2012 dollars) Price level (GDP Deflator, 2012 = 100)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Help plotting points and labeling
Transcribed Image Text:End of Chapter 3.55
Question
In the graph, the economy is in long-run equilibrium at point A.
LRAS,
SRAS,
Now, assume that there is an unexpected increase in the price of oil.
1.) Use the line drawing tool to show the resulting short-run equilibrium on your
diagram. Label any new aggregate demand or aggregate supply curve as AD2
SRAS, or LRAS2 as appropriate.
2.) Use the point drawing tool to locate the new short- run equilibrium point. Label
this point B.
Carefully follow the instructions above, and only draw the required objects.
AD1
Real GDP (trillions of 2012 dollars)
Click the graph, choose a tool in the palette and follow the instructions to create your graph.
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Price level (GDP Deflator, 2012 = 100)
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