c) Price Level A U LRAS B SRAS₁ SRAS₂ AD₁1 AD₂ Quantity of Output Figure 1: AD & AS diagram Based on the graph of the ag

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C Price Level A U Lras B Sras Sras Ad 1 Ad Quantity Of Output Figure 1 Ad As Diagram Based On The Graph Of The Ag 1 (65.61 KiB) Viewed 11 times

c) Price Level A U LRAS B SRAS₁ SRAS₂ AD₁1 AD₂ Quantity of Output Figure 1: AD & AS diagram Based on the graph of the aggregate-demand and aggregate-supply curve in Figure 1, assume that the initial equilibrium is at point A. Briefly explain what are the factors of production that could cause the shift of point A to point D (the decline in the aggregate output). (5 m) d) You need to draw the graph of the aggregate-demand and aggregate-supply curve of a country. What will happen to the equilibrium of the economy if the government imposes a contractionary monetary policy. Please show on the graph and explain briefly. (5 m)