Answers thanks, the graph of C is the same as the above

7. (a) An economy is currently far below capacity. Show the short-run changes in the AS/AD graph below and predict the changes in the price level and aggregate output if firms increase capital investment. Tor V. how much ? P aut Sh (b) An economy is currently near capacity. Show the short-run changes in the AS/AD graph below and predict the changes in the price level and aggregate output if the central bank raises the required reserve ratio. At the current equilibrium AS curve is steep (c) Show the short-run changes in the AS/AD graph below and predict the changes in the price level and aggregate output if energy price increases in the world market and the central bank tries to limit the rise of the price level. AS curve shifts AD curve shifts so that there will much rise in P