Graph each situation. What happens to AD orSRAS, price level, and real domestic output?

1. Recessionary gap. Consumer debt increases.
2. Long-run Equilibrium. There is a positive supply-sideshock (oil gets cheaper on the world market).
3. Inflationary gap. The dollar appreciates against the yen(AD only)
4. Long-run equilibrium. Interest rates on business loansincrease.
5. Recessionary gap. Government invests $195 billion onnational defense.
6. Long-run equilibrium. Government cuts personal incometaxes.
7. Inflationary gap. Mexico is experiencing prosperity.