All AP Courses

Lab

Draw the AD-AS Graph

Each situation changes one curve first. Choose that curve, drag it the way the situation pushes it, then drag the round point to the new short-run equilibrium and check your graph. Labels follow the exam's habit: AD1 and AD2 for the curve that moved, Y1 and Y2 for real output, PL1 and PL2 for the price level.

Challenges

  1. Draw every situation, and before you check each one, say which way real output, unemployment and the price level will move.
  2. For each situation where the price level rises, say whether it is demand-pull or cost-push inflation.
  3. Put the equilibrium point where your new curve meets LRAS instead, and read what the page says. Which two curves set the short-run equilibrium, and why is LRAS not one of them?

Topics this lab supports