un Use the graph to the right to answer the following questions (assume that each event takes places independently) 1. What is the short-run equilibrium price level and output? 2. Identify the short-run equilibrium price level and output if consumption increased? 3. Identify the short-run equilibrium price level and output after a negative supply shock? 4. What happens to output and unemployment if investment falls 5. Use the graph to explain the difference between demand-pull and costs-push inflation.

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