Help me with this Macroeconomics Unit 3 Q

7. FRQ Practice: (Outline form below!) Assume the economy of Guruland is currently facing a recessionary gap. In the short run, wages are fixed. (a) Draw a correctly labeled graph of short-run aggregate supply, long-run aggregate supply, and aggregate demand. Show each of the following. (i) Equilibrium Output, labeled Y1 (ii) Equilibrium Price Level, labeled PL1 (b) Assume that there is an increase in exports from Guruland. On your graph in part (a), show the effect of higher exports on the equilibrium in the short run, labeling the new equilibrium output and price level Y2 and PL2 respectively. (c) Based on your answer in part (b), what is the impact of higher exports on real wages in the short run? Explain. (d) As a result of the increase in exports, export-oriented industries in Guruland increase expenditures on new container ships and equipment. (i) What component of aggregate demand will change? (ii) What is the impact on the long-run aggregate supply? Explain. Moore Guru AP Resources MG