Question

If anyone could draw the graph for this out or a visual for this would be great, I struggle with understanding how to draw graphs for Macro, and really do not understand long term and short term.

Using aggregate demand, short-run aggregate supply, and long-run aggregate supply curves, show how each of the following government policies will impact the economy. In each case, what are the effects on the aggregate price level and aggregate output?

1. There is a decrease in taxes on households

2. There is a decrease in government spending.

Answer 1

How do you graph long run aggregate supply?

Long-Run Aggregate Supply Curve | Theory, Graph & Formula ...

The long-run aggregate supply curve, or LRAS, is vertically graphed with real GDP on the x-axis and price level on the y-axis. In the long-run view of supply, it is not affected by demand and prices. Instead, it is affected by the variability of all business inputs

Explanation: