An aggregate-supply (AS)curve is described by the equation Y = Y LR + a × (P - P EXP ),where Y is current output,Y LR is the long run level of output,a is a positive constant,P is the current price level,and P EXP is the expected price level.Suppose Y LR = 50,a = 1,and PEXP = 40.
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a.Draw the long-run aggregate-supply curve in an AD - AS (aggregate demand - aggregate supply)diagram.
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b.Using the AS equation,find the output corresponding to price levels P = 40 and P = 80 and place the 2 points on your diagram.Draw the short-run AS curve that passes through the two points.
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c.Identify the expected price level on your graph.
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d.Suppose the expected price level decreases to P EXP = 30.For current price levels P = 40 and P = 60,recalculate the output levels using the AS formula.Draw the new AS curve and identify the new expected price level.

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The Answer of An aggregate-supply (AS)curve is described by the equation Y = Y LR + a × (P - P EXP ),where Y is current output,Y LR is the long run level of output,a is a positive constant,P is the current price level,and P EXP is the expected price level.Suppose Y LR = 50,a = 1,and PEXP = 40.
?
a.Draw the long-run aggregate-supply curve in an AD - AS (aggregate demand - aggregate supply)diagram.
?
b.Using the AS equation,find the output corresponding to price levels P = 40 and P = 80 and place the 2 points on your diagram.Draw the short-run AS curve that passes through the two points.
?
c.Identify the expected price level on your graph.
?
d.Suppose the expected price level decreases to P EXP = 30.For current price levels P = 40 and P = 60,recalculate the output levels using the AS formula.Draw the new AS curve and identify the new expected price level.

An Aggregate-Supply (AS)curve Is Described by the Equation Y =