Using the Aggregate Supply and Demand Model,illustrate What Happens in the Long

question 36

Essay

Using the aggregate supply and demand model,illustrate what happens in the long run when the economy suffers a supply shock.Begin your analysis by assuming the economy has suffered the supply shock in the short run,but has not yet adjusted to it in the long run.

---

Definitions:

Myograph

A myograph is an instrument used to measure and record the force and speed of muscle contractions.

Tomograph

A tomograph is a device used in medical imaging to create detailed cross-sectional images of the body, utilizing techniques such as X-ray, MRI, or CT scans.

Increased Salivation

The enhanced production of saliva, often in response to the presence of food or anticipation of eating.

Pupil Constriction

The narrowing of the pupil, controlled by the iris, which regulates the amount of light entering the eye.