Complete the following questions:

Worksheet 19.2: Equilibrium 1. Use AD/AS graphs to show the short-run effects of each of the following shocks on the aggregate price level and on aggregate output. The price of copper, steel, and other commodities has risen in global markets. b. A weak auto industry has prompted less investment spending by many rms that manufacture auto parts (brake pads, fan belts, spark plugs, etc). c. Congress lowersltaxes and increases spending. d. More and more students are graduating from high school and receiving college degrees. 6. The average wage rises way above ination for the rst quarter of the year. f. Newspapers report housing sales have decreased for the third month in a row. 2. Draw a graph that shows the economy currently in long-run equilibrium. a. Suppose that household wealth has been falling for several months. Given this, adjust your graph to show both the short-run change in price level and real GDP. b. Describe how the economy will adjust in the long run. Using the graph you drew in part a, show this adjustment to long-run equilibrium