Macro Topic 3.6 Changes in the AD-AS Model Part 2 - Draw It Again- For each of the following scenarios show the effect on AD, SRAS, and LRAS. Label the initial price level PL, and the new price level and output, PL2 and Y2. Start each graph in either a positive or a negative output gap, depending on the scenario. 7. To combat a recession, Congress passed the 8. In 2018 with unemployment at 4.1%, the Tax Economic Stimulus Act of 2008 Cuts and Jobs Act of 2017 went into effect CRAY KAS pl z Price level PL , level PL, PL AD G DPR AD 9. Still feeling the effects of the Great Depression, 10. To fight stagflation in the 1979, Paul Volcker, the US increased military spending and entered the Chairman of the Federal Reserve, increased World War 2 in 1941 interest rates to lower consumption LRAJ CRAS JRAJ JRAJ PL, Price Price Level PC 1PVP IPL, AP. AP, AP 6DPR Part 3 - Stretch Your Thinking- Answer the question. GPPR 11. Inflation can be caused by changes in aggregate demand (demand-pull) or changes in aggregate supply (cost-push). In your opinion, which of these two are worse for the overall economy? Explain your reasoning. I believe cost- push inflation worde because it is less alterable and decrease, supply. cost- pull inflation may also cause layoffs