1. Why might it be important for policymakers to know which in zone of the SRAS curve the economy is?
2. In your view, is the economy currently operating in the Keynesian, intermediate or neoclassical portion of the economy's aggregate supply curve?
3. If firms become more optimistic about the future of the economy and, at the same time, innovation in 3-D printing makes most workers more productive, what is the combined effect on output, employment, and the price-level?

4. The table below describes Santher's economy.

Price Level	AD	AS
50	1,000	250
60	950	580
70	900	750
80	850	850
90	800	900

1. Plot the AD/AS curves and identify the equilibrium.
2. Would you expect unemployment in this economy to be relatively high or low?
3. Would you expect prices to be a relatively large or small concern for this economy?
4. Imagine that input prices fall and so AS shifts to the right by 150 units. Identify the new equilibrium.
5. How will the shift in AS affect the original output, price level, and employment?