Show on a graph of the aggregate economy the impact of the f…
Show on a graph of the aggregate economy the impact of the following on the economic indicators. Assume the economy is initially in long run equilibrium. A devastating flood in Brazil, a main exporter of sugar cane, reduces yields in sugar production. Sugar is a good that serves as an input to many food products such as: cereal, soda, cake mix, yogurt, ketchup. The AD function . The AS function . Impact on: real GDP price level unemployment