1. Line-up corners with transparency’s corners
Line-up corners with transparency’s corners . No need to re-draw existing lines.
Team: _____
(A)
(B)
You will be given four changes to the economy: A, B, C, and D. For each, decide if there is a shift and how to model the change graphically. Draw in shifts of the SRAS and/or AD curves (if necessary). Label the Aggregate Price Level and Real Aggregate Output that results.
Spokesperson needs to explain your graphs.
SRAS1
SRAS1
Aggregate Price Level
Aggregate Price Level
AD1
AD1
Real Aggregate Output
Real Aggregate Output
(C)
(D)
SRAS1
SRAS1
Aggregate Price Level
Aggregate Price Level
AD1
AD1
Real Aggregate Output
Real Aggregate Output
Created by W. Edward Chi, Moreno Valley College