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graph and answers only 2. There is a decrease in the cost of an input into the production of many goods. Show on one AD/AS diagram the effect on output and prices in both the short-run and the long-run. Mark the starting price and output P1 and QN. Mark the price and output at the end of the short-run P2 and Q2. Mark the price and output at the end of the longrun P3 and Q3. Be sure to label all the lines on your diagram, and if a line shifts, mark the order of the shifts with subscript numbers after the symbols (for example, AD1 shifts to AD2 ). Next to the diagram, state the effect on prices, output, unemployment, and wages in both the short-run and long-irun. Assume we start at QN. 2) Decrease in cost of an inpit in to the Production of many goods short mun Pride: Poviput: Employnent: wages: Long Run Pride: outpot: Employ mext: a wages: d) ecrease in cust of In pit of production price: output:.

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graph and answers only 2. There is a decrease in the cost of an input into the production of many goods. Show on one AD/AS diagram the effect on output and prices in both the short-run and the long-run. Mark the starting price and output P1 and QN. Mark the price and output at the end of the short-run P2 and Q2. Mark the price and output at the end of the longrun P3 and Q3. Be sure to label all the lines on your diagram, and if a line shifts, mark the order of the shifts with subscript numbers after the symbols (for example, AD1 shifts to AD2 ). Next to the diagram, state the effect on prices, output, unemployment, and wages in both the short-run and long-irun. Assume we start at QN. 2) Decrease in cost of an inpit in to the Production of many goods short mun Pride: Poviput: Employnent: wages: Long Run Pride: outpot: Employ mext: a wages: d) ecrease in cust of In pit of production price: output:

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