Question: Hello tutor, I get problems in this exercise regarding marcoeconomics [Aggregate Demand and Aggregate Supply.] 1. Explain how the economy moves back to full employment

Hello tutor, I get problems in this exercise regarding marcoeconomics [Aggregate Demand and Aggregate Supply.]

1. Explain how the economy moves back to full employment from recession. Be sure to detail what happens to short-run aggregate supply, unemployment, equilibrium GDP and the price level.

2. Hurricane Katrina resulted in a decline in oil production infrastructure along the gulf coast. As a result there was an unexpected decline in oil and natural gas supplies in 2005. Suppose that this caused an increase in the price level and a decline in real GDP in 2006. Also assume that potential real GDP continued to grow due to other factors. You can assume the aggregate demand curve did not change. Show the macroeconomic equilibrium for 2005 and 2006 using the dynamic aggregate supply and aggregate demand model.

I hope you can help me

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