Question: need help there are answer options: there exists [an inflationary/ a recessionary] production will [increase/ decrease] production by [Increasing/decreasing] shift [left/right] The economy of Ashenvale

need help

there are answer options:

  1. there exists [an inflationary/ a recessionary]
  2. production will [increase/ decrease]
  3. production by [Increasing/decreasing]
  4. shift [left/right]

need help there are answer options: there exists [an inflationary/ a recessionary]

The economy of Ashenvale is currently in a short-run equilibrium, depicted by point E on the graph. Economy of Ashenvale In the short run, there exists gap of in Ashenvale. (Enter your response as positive value.) 2,400- ! Y* If there is no intervention in the economy by the government, then the wages and the unit costs of production will during the 2,000- ASO adjustment process as the economy moves from short run to long run. Firms will respond to declining unit costs of production by their level of output. As a result, the AS curve will shift| until the 1,600- gap is closed Price Level ( 1,200- 1.) Using the three-point curve drawing tool, draw and label the new AS curve if there is no government intervention. 2.) Using the point drawing tool, plot and label the new long-run equilibrium point without government intervention. 800 .......... Carefully follow the instructions above, and only draw the required object. ...... 400- AD 3.000 5,000 7,000 9,000 Real GDP (Y) 11,000

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