First, identify any change in determinant and explain why and how the change occurs and through which component of aggregate demand. Draw and explain what happens to the economy in the short run. What happens to the price level, unemployment and real GDP in the short run? Is there an inflationary or recessionary gap? Second, draw and explain what happens to the economy in the long run . What happens to the price level, unemployment and real GDP in the long run? Be sure to explain all the dynamics involved. Wealth decreases. Foreign real national income increases. Businesses expect higher future sales. Expected price level drops. Harder: All taxes rise. The dollar depreciates and real foreign national income drops. Productivity increases