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1) Sketch a graph using instructions below and answer the following questions. Label both axes and all curves. Draw LRAS and show a potential equilibrium

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1) Sketch a graph using instructions below and answer the following questions. Label both axes and all curves. Draw LRAS and show a potential equilibrium output as Y*. Draw SRAS. Have your AD1 intersect this SRAS significantly below the potential output. Label AD1-SRAS equi- librium as point A. Have your AD2 intersect the same SRAS slightly above the potential output. Label AD2-SRAS equi- librium as point B. Graph: (10 points)

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