The graph below shows the AD-AS diagram for Norway. Suppose that the economy is initially in...

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The graph below shows the AD-AS diagram for Norway. Suppose that the economy is initially in long-run equilibrium with the price level of 800. Now suppose that the Aggregate Demand (AD) curve shifts left from AD1 (blue) to AD2 (green). 1200 ADX 1100 1000 AD 900 800- 700 600 599ST 400 300- 200 Price Level 100- LRAS 100 200 300 400 500 600 700 800 900 1000 1100 120 Real GDP 1. What is the new GDP in the short-run as a result of this shift? a 2. What is the new price level in the short-run as a result of this shift? 1. What is the new GDP in the short-run as a result of this shift? 2. What is the new price level in the short-run as a result of this shift? 3. What is the price level in the new long-run equilibrium as a result of this shift? 4. What is GDP in the new long-run equilibrium as a result of this shift? 5. What causes the economy to move from the short-run equilibrium to the new long-run equilibrium? O Decreased wages. O Increased wages. O Increased prices. O Decreased prices. The graph below shows the AD-AS diagram for Norway. Suppose that the economy is initially in long-run equilibrium with the price level of 800. Now suppose that the Aggregate Demand (AD) curve shifts left from AD1 (blue) to AD2 (green). 1200 ADX 1100 1000 AD 900 800- 700 600 599ST 400 300- 200 Price Level 100- LRAS 100 200 300 400 500 600 700 800 900 1000 1100 120 Real GDP 1. What is the new GDP in the short-run as a result of this shift? a 2. What is the new price level in the short-run as a result of this shift? 1. What is the new GDP in the short-run as a result of this shift? 2. What is the new price level in the short-run as a result of this shift? 3. What is the price level in the new long-run equilibrium as a result of this shift? 4. What is GDP in the new long-run equilibrium as a result of this shift? 5. What causes the economy to move from the short-run equilibrium to the new long-run equilibrium? O Decreased wages. O Increased wages. O Increased prices. O Decreased prices.