Problem
Suppose that the price level that emerges from aggregate demand and aggregate supply conditions during the current period is lower than decision makers had anticipated.
a. Construct AD, SRAS, and LRAS schedules that reflect these conditions.
b. During the current period, how will the actual rate of unemployment compare with the natural rate? How will actual output compare with the economy's potential?
c. As the result of the current conditions, what will tend to happen to resource prices and interest rates? Why?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.