SHORT ANSWER

Assume real GDP is growing at 3%, inflation is a slow and stable 2%,

and spending is growing at 6%.

1. Now, assume a new robotic technology comes into the world

that makes all workers more productive (for you Jetsons fans,

let's say everyone now has a Rosey the Robot at their

disposal). Is this a shock to AD or LRAS? How will this shock

impact inflation and real GDP growth?

1

2. Assume a pandemic hits the world and consumers tighten

their belts due to uncertainty about the future. Is this a shock

to AD or LRAS? How will this shock impact inflation and real

GDP growth?