1.Elaborate the factors with examples that influence aggregate supply (AS) in an economy. For what particular reason, does a short-run AS curve slope upward? Discuss the fundamental difference between short-run equilibrium and long-run equilibrium (use graphs).

2.How does a change in short-run aggregate supply alter the equilibrium in the short-run? How does it affect the long-run equilibrium also? Explain the interaction between short-run and long-run equilibrium under such a circumstance? Distinguish between inflationary and recessionary gap (use graphs).