What happens in the economy when firms are no longer able to meet the demand for their output? Question content area bottom left Part 1 Draw an aggregate demand curve. Label it AD. Draw an aggregate supply curve. Label it AS. Draw a point at the short-run macroeconomic equilibrium. Label it 1. Draw a point on the AS curve at which firms are unable to meet the demand for their output. Label it 2. Part 2 When firms are unable to meet the demand for their output, _______. Prices _______. A. short-run aggregate supply is greater than long-run aggregate supply; rise B. the quantity of real GDP demanded is greater than the quantity of real GDP supplied; rise C. the quantity of real GDP supplied is greater than the quantity of real GDP demanded; fall D. aggregate demand is greater than short-run aggregate supply