The following graphs show either aggregate demand or short-run aggregate supply shifting to the right or to the left.

a. Match the following scenarios to the appropriate graph.
i. An increase in the expected price level
ii. An increase in households' expectations of their future income
iii. A decrease in the price of an important natural resource
iv. A decrease in firms' expectations of the future profitability of investment spending
b. Match one or more of the four graphs to each of the following scenarios:
i. The economy experiences a recession
ii. The economy experiences short-term inflation
iii. The economy experiences stagflation

1. 2. LRAS LRAS Price level SRAS, Price SRAS, SRAS, level SRAS, P, P. P, P. AD AD YY, Y,Y, Real GDP Real GDP 3. 4. LRAS LRAS Price Price SRAS SRAS level level P. P. P. AD2 AD, AD AD2 Y2Y, Real GDP Y,Y2 Real GDP