Let’s say that in 2019 the United States experiences abnormally good weather. This weather is particularly beneficial for agricultural crop production. Determine how the run of good weather affects the U.S. real GDP, price level, and unemployment rate in both the short run and the long run.

You can use graphs to derive your answers, but place your answers in the boxes below.

Assume that the economy starts in long-

run equilibrium, assume no other changes, and make all comparisons to the initial long-

run equilibrium.

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Short run Long run u P Y u P Y