Only one quick question:

Suppose that in period 1 there is a permanent increase in aggregate demand, and the expression for AD becomes P = 800 0.5Y. What are the short-run equilibrium values of Y and P in period 1? Consider the AD-AS model of the economy where the expressions for AD and AS curves are, respectively, P P 600 0.5Y P_1 + 0.5(Y Y*) Where Y is real income, Y* is fullemployment income, and P_1 is the price level in the previous period. The economy is originally in longrun equilibrium i.e, real income is equal to full employment income in period 0 and P_1 = 100