7 . 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. Aggregate Demand Aggregate Supply LRAS Price Level Quantity of Output Aggregate Demand Aggregate Supply LRAS In the short run, the price level and output . In the long run, the price level will be and output will be co