GDP is up .5% for the previous quarter, after having been in a decline for the previous twelve months. CPI has been steady for the past twelve months. Unemployment has fallen .8% during the previous quarter, after having risen steadily for the past twelve months. On your own, draw the three-stage aggregate supply (AS) curve, and two Aggregate Demand (AD) curves for this situation. Label them to show the direction the economy is moving along the AS curve. Then, answer these questions in the End of Unit Project: #3-1 What phase of the business cycle is the economy in? How do you know? #3-2 Do you want Aggregate Demand to move? Which way? Why?