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What is wrong with the following AS/AD diagram showing the effect on the macroeconomy of an increase in aggregate demand? Description of the graph is
What is wrong with the following AS/AD diagram showing the effect on the macroeconomy of an increase in aggregate demand? Description of the graph is below the graph. The graph has price on the vertical axis and quantity on the horizontal axis. There is a line sloping up labelled AD1 and a line to the right of it sloping up labelled AD2. There is a line sloping down labelled SRAS which goes through both lines. Where AD1 intersects SRAS, there is line going straight to the left which is labelled P1 where it hits the price axis and a line going straight down which is labelled Q1 where it hits the quantity axis. Where AD2 intersects SRAS, there is line going straight to the left which is labelled P2 where it hits the price axis and a line going straight down which is labelled Q2 where it hits the quantity axis. P2 is lower than P1 and Q2 is to the right of Q1. Group of answer choices The Q variable should be on the vertical axis and the P variable on the horizontal axis. The AD curves should slope down and the SRAS curve should slope up. Nothing. The
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