Draw an ad-as diagram that depicts the australian economy

Reference no: EM133711298

Question: The information in the following table shows what the situation will be in 2021 if the government does not use fiscal policy:

Year	Potential GDP	Real GDP	Price Index
2022	$2.7 trillion	$2.7 trillion	118.8
2023	$2.7 trillion	$2.3 trillion	119.7

Draw an AD-AS diagram that depicts the Australian economy in 2022. Assume the economy is in long-run equilibrium.

On the same diagram, show a short-run supply shock that depicts the Australian economy in a short-run equilibrium in 2023.

Reference no: EM133711298

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