![Suppose the economy is initially in long-run equilibrium. Using the AD-AS framework, explain the effect of shocks to potential output on that economy s inflation and output. How would that situation differ Suppose the economy is initially in long-run equilibrium. Using the AD-AS framework, explain the effect of shocks to potential output on that economy s inflation and output. How would that situation differ](https://homework.study.com/cimages/multimages/16/aish-11130582712919351780.jpg)
Suppose the economy is initially in long-run equilibrium. Using the AD-AS framework, explain the effect of shocks to potential output on that economy s inflation and output. How would that situation differ
![22.3 Recessionary and Inflationary Gaps and Long-Run Macroeconomic Equilibrium – Principles of Economics 22.3 Recessionary and Inflationary Gaps and Long-Run Macroeconomic Equilibrium – Principles of Economics](https://open.lib.umn.edu/app/uploads/sites/180/2016/05/a8e12eaa6b52033994ca3987d6d27d74.jpg)
22.3 Recessionary and Inflationary Gaps and Long-Run Macroeconomic Equilibrium – Principles of Economics
![Using the aggregate demand-aggregate supply diagram, graphically illustrate and explain the impact of an expansionary monetary policy on the price level and real income in the long run. | Homework.Study.com Using the aggregate demand-aggregate supply diagram, graphically illustrate and explain the impact of an expansionary monetary policy on the price level and real income in the long run. | Homework.Study.com](https://homework.study.com/cimages/multimages/16/t101010107347912436680215478.jpg)
Using the aggregate demand-aggregate supply diagram, graphically illustrate and explain the impact of an expansionary monetary policy on the price level and real income in the long run. | Homework.Study.com
![Starting with a position of long-run equilibrium, use the monetarist model to graphically portray what happens to the price level and Real GDP in the short run and in the long run Starting with a position of long-run equilibrium, use the monetarist model to graphically portray what happens to the price level and Real GDP in the short run and in the long run](https://homework.study.com/cimages/multimages/16/nishant20327305455335320170177.jpg)
Starting with a position of long-run equilibrium, use the monetarist model to graphically portray what happens to the price level and Real GDP in the short run and in the long run
![Starting with a position of long-run equilibrium, use the monetarist model to graphically portray what happens to the price level and Real GDP in the short run and in the long run Starting with a position of long-run equilibrium, use the monetarist model to graphically portray what happens to the price level and Real GDP in the short run and in the long run](https://homework.study.com/cimages/multimages/16/nishant20313526599537840452459.jpg)
Starting with a position of long-run equilibrium, use the monetarist model to graphically portray what happens to the price level and Real GDP in the short run and in the long run
![Starting with a position of long-run equilibrium, use the monetarist model to graphically portray what happens to the price level and Real GDP in the short run and in the long run Starting with a position of long-run equilibrium, use the monetarist model to graphically portray what happens to the price level and Real GDP in the short run and in the long run](https://homework.study.com/cimages/multimages/16/29248081-15485117290450450851.jpg)