The graph shows the economy in long-run equilibrium at point A. LRAS, SRAS, Now assume that there is a large increase in demand for U.S. exports. 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 LRAS, as appropriate. 2.) Use the point drawing tool to locate the new short- run equilibrium point. Label this point B. Now consider the adjustment of the economy back to long-run equilibrium. 3.) Use the line drawing tool to show the resulting long-run equilibrium on your diagram. Label any new aggregate demand or aggregate supply curve appropriately. 4.) Use the point drawing tool to locate the new long- run equilibrium point. Label this point C. Carefully follow the instructions above, and only draw the required objects. AD, Real GDP (trillions of 2012 dollars) Price level (GDP Deflator, 2012 = 100)

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Help in 10 minutes -(need help placing the points and lines and labeling. )
End of Chapter 3.5a
Questia
The graph shows the economy in long-run equilibrium at point A.
LRAS,
SRAS,
Now assume that there is a large increase in demand for U.S. exports.
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 LRAS, as
appropriate.
2.) Use the point drawing tool to locate the new short- run equilibrium point. Label this point B.
Now consider the adjustment of the economy back to long-run equilibrium.
3.) Use the line drawing tool to show the resulting long-run equilibrium on your diagram. Label
any new aggregate demand or aggregate supply curve appropriately.
4.) Use the point drawing tool to locate the new long- run equilibrium point. Label this point C.
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.
Check Answe
3 parts
remaining
Clear All
a
ENG
search
Cop
近
Price level (GDP Deflator, 2012 = 100)
Transcribed Image Text:End of Chapter 3.5a Questia The graph shows the economy in long-run equilibrium at point A. LRAS, SRAS, Now assume that there is a large increase in demand for U.S. exports. 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 LRAS, as appropriate. 2.) Use the point drawing tool to locate the new short- run equilibrium point. Label this point B. Now consider the adjustment of the economy back to long-run equilibrium. 3.) Use the line drawing tool to show the resulting long-run equilibrium on your diagram. Label any new aggregate demand or aggregate supply curve appropriately. 4.) Use the point drawing tool to locate the new long- run equilibrium point. Label this point C. 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. Check Answe 3 parts remaining Clear All a ENG search Cop 近 Price level (GDP Deflator, 2012 = 100)
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