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Price level PL2 B LRAS LRAS1 LRAS Price level Price level SRAS SRAS1 SRAS1 SRAS2 PL2 B. PL: A PL1 A PL: B PL2

Price level PL2 B LRAS LRAS1 LRAS Price level Price level SRAS SRAS1 SRAS1 SRAS2 PL2 B. PL: A PL1 A PL: B PL2 AD2 AD2 ADY ADY ADY 0 0 0 RGDP RGDP RGDP Ya YFE Y Y YFE Y1 Y2 YFE Graph 1 Graph 2 Graph 3

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