If the economy is producing above the natural rate of output in the short-run, w input prices will eventually q, and q, will decrease, returning the economy equilibrium. q,
rise / short-run aggregate supply
fall / short-run aggregate supply
fall / long-run aggregate supply
fall / aggregate demand
rise / aggregate demand
If the economy is producing above the natural rate of output in the short-run,
equilibrium.
O rise/short-run aggregate supply
O fall/short-run aggregate supply
O fall /long-run aggregate supply
O fall/aggregate demand
O rise/aggregate demand