.
AS2 .
AS1 .
Point (c).
A vertical line at Q1 .
A vertical line at Q2 .
Government must accommodate it by increasing government spending.
Government must accommodate it by decreasing taxes.
Federal Reserve must accommodate it by increasing the money supply.
Federal Reserve must accommodate it by decreasing the money supply.
Government must accommodate it by decreasing government spending or increasing taxes.
An increase in RGDP.
A lower unemployment rate.
An inflation spiral that could become "hyperinflationary."
A recession.
Constant price level.
Stagflation.
Sustained inflation.
Demand-pull inflation.
Cost-push inflation.
Deflation.
Decrease in government regulation.
Increase in government spending.
Decrease in taxes that stimulates new spending.
Increase in wages that go beyond gains in productivity.
Increase in investment spending.
P2 and RDGP will be Q3 .
P3 and RDGP will be Q1 .
P1 and RGDP will be Q1 .
P2 and RDGP will be Q2 .
P3 and RGDP will be Q3 .