Now show thelong-runimpact of the business pessimism by shifting both the aggregate demand (AD) curve and the short-run aggregate supply (AS) curve to the appropriate positions.

In the long run, as a result of the business pessimism, the price level increases/decreases/remain the same, the quantity of outputrises above/returns to/falls below the natural level of output, and the unemployment rate rises above/returns to/falls below the natural rate of unemployment.

New show the long-run impact of the business pessimism by shifting both the aggregate demand (AD) curve and the shorterun aggregate supply (AS) curve to the appropriate positions. 240 _o_ 200 AD D 160 _. AS m > m | 120 I.\" 9 II l1 Bl) 4|) (I I i I l I 0 2m] arm SDI] 3m] 1mm 1200 OUTPUT [Billions of dollars) In the long run, as a result of the business pessimism, the price level V , the quantity of output V the natural level of output, and the unemployment rate V the natural rate of unemployment