Unit 2.2 The ADIAS Model Practice Activity Exercise: For each of the following, illustrate and explain the changes to AD and AS, output, price levels and employment that will occur in the short-run and in the long-run. 1. An increase in stock prices makes households fell wealthier: The United States Economy PL LRAS SRAS We rGDP o the short-run: I Average price level I National income and output I Employment 0 the long-run: I Average price level I National income and output I Employment