The economy on the left is in a boom (expansion) phase, because the GDP is growing
overtime. The Real GDP or Y is increased.
The economy on the right is in a recession phase, because the GDP is decreasing
overtime. The Real GDP or Y is decreased.
Long run equilibrium
Any affections to C, I, G, or NX will affect theAD curve to shift in or out Due to the higher oil prices, the SRAS shifted in to the left and P1 is shifted up to P2.
Unemployment always mo