Question: Fill up the blanks Applying the aggregate demand/aggregate supply model, describe the impact of the following event on GDP and prices in the short run:

Fill up the blanks

Applying the aggregate demand/aggregate supply model, describe the impact of the following event on GDP and prices in the short run:

Suppose firms become very optimistic about future business conditions and invest heavily in new capital equipment, in teh short run,

Blank 1 (type in "AD" or "AS") will shift to the Blank 2 (type in "right" or "left").

Output will Blank 3 (type in "increase" or "decrease") and price will Blank 4 (type in "increase" or "decrease").

Blank 1:

Blank 2:

Blank 3:

Blank 4:

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