Read/Review the following article. Use the AD-AS model to explain the current macroeconomics issue we are facing today: inflation. Your graph can be hand or computer drawn. Make sure to label the original and new equilibrium, and both curves shift.

 

Link:

• https://www.pbs.org/newshour/economy/how-the-supply-chain-caused-current-inflation-and-why-it-might-be-here-to-stay

Part 2: Answer the following question. What fiscal policy would be most appropriate to alleviate this macroeconomic issue (noted in Part 1).