1. The term stagflation was used to describe the occurrence of a recession along with higher inflation in the mod-1970's. What kind of "shock" is required to cause stagflation?

2. Why is the LRAS curve vertical in the AD-AS graph?

3. When drawing the AD-AS graph, what is measured (typically) on the vertical axis?

4. If nominal spending growth is 5% and the economy is in recession at -1% growth rate, what is the inflation rate?

5. How would the introduction of new technologies effect the AD-AS model? Specifically, which curve on the AD-AS model would be impacted/shifted?