10. Problems and Applications Q9 A recession overseas causes foreigners to buy fewer U.S. goods. On the following graph, indicate the short-run and long-run effects of this change on the economy, assuming policymakers take no action. ? LRAS O Aggregate Supply Aggregate Demand Aggregate Supply Price Level A LRAS Aggregate Demand Quantity of OutputIn the short run, the price level V and output Y . In the long run! the price level will be V and output will be V compared to the initial equilibrium prior to the change