For each of the following use an AD AS diagram to show the short.un and longtun effects on output and inflation Assume the economy starts in long-run cubrium Instructions in all the diagrams below.chick and drag the appropriate curve of curves to show the short run changes on the left side and long-run changes which must also include the short run changes) on the right side An increase in comune confidence that leads to Higher coup spending 0 Short-Run Effects Long-Run Effects LRAS LRAS Inflation rate LAS BRAS Inflation rate AD Output Output Y
b. A reduction in taves Short-Run Effects Long-Run Effects LAS LRAS Inflation rate RAS Inflation rate BAS AD Output OY
c. An easing of monetary policy by the Fed (a downward shift in the policy reaction function Short-Run Effects Long Run Effects URAS LAS Infante -IRAS RAS 42, Output OY
A sharp drop in oil prices (assume the change in oil prices is permanent and no policy actions are taken Short-Run Effects Long-Run Effects 8 LRAS LRAS Inflation rate SAAS Inflation rate RAS AD Output Output
e. A war that raises government purchases Short-Run Effects Long-Run Effects LRAS LAS fation rate BRAS RAR AD AD Output Olot
For each of the following use an AD AS diagram to show the short.un and longtun effects on output and inflation Assume t
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For each of the following use an AD AS diagram to show the short.un and longtun effects on output and inflation Assume t
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