Suppose the economy begins at full employment. Label this st…

Suppоse the ecоnоmy begins аt full employment. Lаbel this stаrting point as point "1." Then, suppose that an upcoming political election causes anxiety among consumers and consumption falls. Show the effects on your graph and label the new equilibrium point "2." Based on the above AD will [answer1] SRAS will [answer2] LRAS will [answer3] the price level (P) will [answer4] as we move from point 1 to point 2 the level of production (Q) will [answer5] as we move from point 1 to point 2. Lastly, our government wants the economy to return to full-employment as quickly as possible. Should it intervene? If so, show the impact of successful fiscal policy on your graph. Label this new equilibrium point "3." In this case, AD will [answer6] SRAS will [answer7] LRAS will [answer8] the price level (P) will [answer9] as we move from point 2 to point 3 the level of production (Q) will [answer10] as we move from point 2 to point 3.