8. Between 2012 and 2020, U.S. GDP increased; the unemployment rate fell; and the price level went down.

• State whether these changes in the U.S. economy could have been caused by a change in Aggregate Demand or a change in Aggregate Supply. For purposes of this question, assume that either AD changed or AS changed but not both.
• Use Aggregate Demand-Aggregate Supply analysis to explain how this change in AD or AS created the changes in GDP, the unemployment rate, and the price level that occurred in between 2012 and 2020. Explain your answer in words. Your explanation should include a description of the process by which the economy moved to a new equilibrium.
• Illustrate your answer in a properly drawn and labeled Aggregate Demand-Aggregate Supply graph. As much as possible, indicate within the graph changes in equilibrium GDP, unemployment rate, and inflation rate (you do not have to submit the graph electronically, but you should be able to draw it).