Draw a correctly labeled AD-AS model of the economy and identify the following: i. Equilibrium price level (P) ii. Equilibrium output ( Y ) iii. Full employment output (Yf) b. Interest rates fall due to a decrease in the demand for money. Illustrate on your graph the new macroeconomic equilibrium that will result due to the change in interest rates. Identify the following: i. Equilibrium price level (P1) ii. Equilibrium output (Y1) c. How will the resulting change in the output shown above impact employment in the short run? Explain. 

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The ADAS model is a graphical representation of macroeconomic equilibrium It shows the relationship between aggregate demand AD aggregate supply AS an... View the full answer