Elucidate for aggregate demand and supply changes both in the short run and long run with the given situation.
Draw an aggregate supply and demand curve as it may have existed in 2006 when output was strong and inflation subdued. Now draw these curves how they exist today. Briefly describe the main factors that have caused any movement in the curves. What are some of the fiscal and monetary policy tools currently being utilized and what will be there likely impact on these curves? Please label the axis and equilibrium points. I know that one could write a dissertation on this but please be concise, precise and focus on the broad issues and not the details. When doing the charts and graphs please have solid explanations with them.