For each of the following:

1. Draw a AD-AS model in long-run equilibrium.
2. Show the short-run effect of the given situation.
3. State what happens in the short run to output, price level, and unemployment.
4. Show the long-run self-adjustment to the macroeconomy that restores the economy to full employment.

1. In the mid-1990's, Silicon Valley improved microprocessors, leading to technological advances in production.

1. In 2005, Hurricane Katrina destroyed oil and natural gas refining capacity in the Gulf of Mexico.

1. In 1999, businesses purchased upgraded machines and computers to prepare for Y2K.

1. In 2008, the global financial crisis decreased consumer and investment spending.

1. In 1979, in order to fight stagflation, Paul Volcker, the Chairman of the Federal Reserve, increased interest rates.

1. To combat a recession, Congress passed the Economic Stimulus Act of 2008.

1. In 2018 with unemployment at 4.1%, corporate taxes were cut.

1. Still feeling the effects of the Great Depression, the U.S. increased military spending as they entered WWII.

1. In 2001, the dot-com bubble burst, lowering the stock market and decreasing consumer confidence.

1. In 2016, consumer confidence began rising as the housing market stabilized.