Question: Please let me know how you would answer the following question. 4. The economy is at point A in the accompanying dia- gram. Suppose that

Please let me know how you would answer the following question.

4. The economy is at point A in the accompanying dia- gram. Suppose that the aggregate price level rises from P1 to P2. How will aggregate supply adjust in the short run and in the long run to the increase in the aggregate price level? Illustrate with a diagram. Aggregate LRAS price level SRAS1 P2 P1 1. . A Y1 Real GDP

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