Instructions: For each of the following, illustrate and explain the changes to AD and AS, output, price

levels and employment that will occur in the short-run and in the long-run. Assume that wages are "sticky"

in the short-run and "flexible" in the long-run.

6. Education spending by state and federal government is reduced, which over time makes it harder for firms to higher skilled, qualified workers. The United States Economy PL| LRAS SRAS Pe . . . . . . . . .... AD Yfe rGDP Explain the short-run and long-run consequences of the change described above:5. A weakening of the value of the US dollar against other major currencies makes American goods more attractive to foreign consumers. The United States Economy PL LRAS SRAS Pe . . . . . . . . ...... AD Yfe rGDP Explain the short-run and long-run consequences of the change described above