Please graph the following changes to the economy by including both the short-run and long-run shifts...

  

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Please graph the following changes to the economy by including both the short-run and long-run shifts (label each curve carefully). Clearly show and state what happens to equilibrium output and the equilibrium price level in both the short-run and the long-run. 1. The 2006 bust of the housing market and subsequent stock market crash has lowered the real wealth of the entire population. 2. The United States government finally listens to economists and eliminates existing trade barriers in an effort to promote free trade and higher living standards (a positive institutional change that benefits the economy). 3. An unusual amount of natural disasters along with a long and severe winter has temporarily slowed production of a large amount of goods and services (negative supply shock). Please graph the following changes to the economy by including both the short-run and long-run shifts (label each curve carefully). Clearly show and state what happens to equilibrium output and the equilibrium price level in both the short-run and the long-run. 1. The 2006 bust of the housing market and subsequent stock market crash has lowered the real wealth of the entire population. 2. The United States government finally listens to economists and eliminates existing trade barriers in an effort to promote free trade and higher living standards (a positive institutional change that benefits the economy). 3. An unusual amount of natural disasters along with a long and severe winter has temporarily slowed production of a large amount of goods and services (negative supply shock).

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It seems like you are studying macroeconomics and are looking to understand how different events affect the Aggregate Supply AS and Aggregate Demand AD within an economy and subsequently how these cha... View the full answer