Start at the initial equilibrium. Show what happens if there is an increase in technology: 1. Determine what variable is changing and which line moves 2. Move the line 3. Secondary moves: a)If you moved LRAS then SRAS moves with it b)If you moved IS or LM then move AD (same P, new Y ) 4. Find the short-run answer: Where AD hits SRAS 5. If price level changed, go up and move LM. Cross IS at the ending Y. The short-run answer is where AD hits SRAS