If the economy is in Y1 in the graph below, and there is no intervention from fiscal and monetary policy, then, over time: AD-AS Price level P AD Y LRAS Y SRAS Real GDP the AD curve will shift out to bring the economy back to long-run equilibrium. the LRAS curve will shift in to bring the economy back to long-run equilibrium. SRAS curve will shift to bring economy back long-run equilibrium. the economy will stay where it is, until it is hit by another shock.