(Solved): Struggling with this graphing problem Use graphical analysis to show how each of the following will ...

Use graphical analysis to show how each of the following will affect the economy, first in the short run and then in the long run. Assume that the United States is initially operating at its full-employment level of output, that prices and wages are eventually flexible both upward and downward, and that there is no counteracting fiscal or monetary policy. (1) The Macroeconomy Real domestic output (GDP) Assume each event begins at the full-employment level of output. a. Because of a war abrood, the oll supply to the United States is disrupted, sending oil prices rocketing upward. (i) Identify the short-fun equilibrium. Instructions: in the graph above, use the tool provided 'aSR' to locate the short-fun equilibrium that results from this shock. (ii) The long-run equilibrium will occur at point b. Construction spending on new homes rises dramatically, greatly increasing total U.S. imvestment spending. (i) identify the short-run equilibrium. Instructions: In the graph above, use the tool provided 'bSR' to locate the short-run equilibrium that resuits from this shock. Assume each event begins at the full-employment level of output. a. Because of a war abroad, the oil supply to the United States is disrupted, sending oil prices rocketing upward. (i) Identify the short-run equilibrium. Instructions: In the graph above, use the tool provided 'asR' to locate the short-run equilibrium that results from this shock. (ii) The long-run equilibrium will occur at point b. Construction spending on new homes rises dramatically, greatly increasing total U.S. investment spending. (i) Identify the short-run equilibrium. Instructions: In the graph above, use the tool provided 'bSR' to locate the short-run equilibrium that results from this shock. (ii) The long-run equilibrium will occur at point c. Economic recession occurs abroad, significantly reducing foreign purchases of U.S. exports. (i) Identify the short-run equilibrium. Instructions: In the graph above, use the tool provided 'cSR' to locate the short-run equilibrium that results from this shock. (ii) The long-run equllibrium will occur at point