AB 204 Unit 8 Assignment AB 204 Unit 8 Assignment | Page 3

What are the factors that can shift short-run aggregate supply curve
from AS1 to AS2? What does Point A represent in the graph? What
does point B represent? Is it the short-run or long-run macroeconomic
equilibrium? Explain.
Assume aggregate demand (AD) is held constant, in the long-run,
starting from point B, what will the economy likely experience? Will it
reach the long equilibrium?