The graphs illustrate an initial equilibrium for the economy. Suppose that the stock market broadly decreases. Use the graphs to show the new positions of aggregate demand (AD), short-run aggregate supply (SRAS), and long-run aggregate supply (LRAS) in both the short run and the long run, as well as the short-run and long-run equilibriums resulting from this change. Then, indicate what happens to the price level and GDP in the short run and in the long run. Short-run graph Long-run graph LRAS LRAS SRAS SRAS Short-ryn equilibrium Long-run equilibrium AD AD Real GDP Real GDP Aggregate price level Aggregate price level

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A: Aggregate demand: the entire demand for products and services in a certain market.

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A:

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Q: macro-economy

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Q: aggregate supply

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A: Hello, thanks for the question. Since you have posted many subparts here, only the first three…

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