AS/AD model

AS/AD model

16. Using the AS/AD model on the graph below demonstrate/draw in the effect from the real problem on the general economy associated with each of the following events in the last year.. Label clearly all lines and movements/shifts.
For a): The deep fall in the stock market Fall 2008 to early March 2009 on Aggregate Demand
For b): The sharp fall in oil prices on Aggregate Demand and Aggregate Supply.

 

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