On the left side with drop-down boxes are letters to the graph. you have to match the four scenarios with the correct graph. there are 4 long scenarios and 4 graphs.

The following options describe 4 macroeconomic scenarios where a shock triggers a change in the macroeconomic equilibrium. These initials shocks have led to different Iong-tem'i macroeconomic equilibria depending on the nature of the shock and policy responses. Please match each of these scenarios with their respective visual representations using the AD-AS model. In the graphs, the left graph depicts the initial shock, while the right graph depicts the long-run equilibrium. _ v First shock(s): In 2012 amid the Euro crisis, Greece's A. investment spending fell considerably because of capital . outows. As result. the Greek economy moved away from its 'w-z- M 5m. potential output. 'M 5m Long-run equilibrium: In their assessment of the situation. the . European Central bank in conjunction with EU and the IMF \"\"5 \"'5' encouraged Greece to conduct a contractionary scal policy. The Greek govemment cut public spending. The Greek , m, economy was forced to go back to its potential output through a '\" drastic fall in nominal wages. E may . v First shock: In 2020 the USA experienced a signicant drop in consumption due to the outbreak of covid-19, making the economy depart from its potential output. 3' Long-run equilibrium: In light of this abnormal economic \"m\" \"\"5 \"3;... ms \"'5' situation, the US government along with the Federal reserve \"d 5"\" be 5m conducted a set of expansionary scal and monetary policies to my close the recessionary gap. The expansion of the demand was so large that it created an inationary gap. This inationary gap in turn disappears when nominal wages increase due to low ur an employment. The short-run aggregate curve shifts up and the output goes back to its potential real GDP while aggregate price level increases even further. mow minor . v First shock: China had incentivized investment spending through cheap credit for the housing market. The housing market experienced a boom which contributed to a signicant um um puk- ms increase in overall aggregate price level. new-I sm \"2.": SW Long-run equilibrium: Since its initial boom, China has built new 5m infrastructure to permanently lower the production costs including in the housing market while keeping investment spending high. _ v First shock(s): The 201920 Australian bushre season (Black 5\" u, Summer), was a period of bushres in many parts of Australia, which, due to its unusual intensity, size, duration, and uncontrollable dimension. is considered a megare. The economic consequences of the megare were lower consumption, investment spending, and productivity as well as less arable land. Long-run equilibrium: While consumption and investment spending have increased since then; production capacity has been unable to go back to its original levels because it is expected that there will be a persistent destruction of arable land and productivity. HEW IRAS w. I} AD' HEP MGDP