how should I make the curve and the fill in blank The graphs illustrate an initial equilibrium for the economy. Suppose that oil prices temporarily decrease.Use the graphs to show the new positions of aggregate demand (AD), short-run aggregate supply (SRAS), and long-runaggregate supply (LRAS) in both the short run and the long run, as well as the short-run and long-run equilibriumsresulting from this change. Then, indicate what happens to the price level and GDP in the short run and in the long run.Short-run graphLong-run graphLRASLRASSRASSRASShort-ryn equilibriumLong-run equilibriumADADReal GDPReal GDPAggregate price levelAggregate price level Short-run graphLong-run graphLRASLRASSRASSRASShort-ryn equilibriumLong-run equilibriumADADReal GDPReal GDPIn the short-run, the price levelandIn the long-run, the price levelandGDPGDPAggregate price levelAggregate price level

The SRAS is based on the assumption that capital is set. (i.e., you can't create a new factory in…

Answered: In the short-run, the price level and…

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In the short-run, the price level and In the long-run, the price level and GDP GDP

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

how should I make the curve and the fill in blank

The graphs illustrate an initial equilibrium for the economy. Suppose that oil prices temporarily decrease.
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 GDP in the short run and in the long run.
Short-run graph
Long-run graph
LRAS
LRAS
SRAS
SRAS
Short-ryn equilibrium
Long-run equilibrium
AD
AD
Real GDP
Real GDP
Aggregate price level
Aggregate price level

Short-run graph
Long-run graph
LRAS
LRAS
SRAS
SRAS
Short-ryn equilibrium
Long-run equilibrium
AD
AD
Real GDP
Real GDP
In the short-run, the price level
and
In the long-run, the price level
and
GDP
GDP
Aggregate price level
Aggregate price level

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