Question #3: Introduction to Economics uctuations Using aggregate demand (AD), short-rim aggregate supply {SRAS} and long-run aggregate supply {LRAS} curves, graphically illustrate the effect of a negative supply shock on output and prices in the short and long run. Assume that the economy is initially in long run equilibrium at the potential output level and prices are xed in the short-rim. In your graph, label "A" for the initial equilibrium, "3' for the short-rim equilibrium, and "C" for the long-run equilibrium