From the financial crisis to the Great Recession

The following graph shows the aggregate demand and aggregate supply curves for the economy. Suppose the economy has recently recovered from a credit market disruption.

Shift one or both curves to indicate the effect of this change on the economy.

Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther.

O AS AD AS PRICE AD REAL GDP