Part 1: Aggregate Demand and Supp y- Use the graph to the n'ght to answer the questions. 1. What is the short-run equilibrium price level and output? 2. Identify the short-run equilibrium price level and output it consumer spending fell? 3. Identify the short-run equilibrium price level and output it investment increased? 4. Identify the short-run equilibrium price level and output after a negative supply shock? 5. If the real GDP was Y3, what types of unemployment would exist? 6. If the real GDP was Y2, what types of unemployment would exist? 7'. Identify the long-run equilibrium price level and output if wages and resource prices are exible. 8. Assume wages and resource prices are exible and that the economy reached long-run equilibrium. What would be the long-run equilibrium output it there was increase in consumer spending? Part 2: Multiplier Practice- Use the graph to the n'ght to answer the questions. 9. If an increase in consumer spending of $10 billion would increase real GDP to $300 billion, what is the marginal propensity to consume? 10. Assume the MP0 was .8 instead. What is the least amount the government could spend to get the real GDP from $200 to $400 billion? 11. Assume the MP0 is .5 instead. What is the least amount the government could cut taxes to get the real GDP from $200 to $400 billion? 12. Why does SRAS eventually become vertical