16. Aggregate Demand and Aggregate Supply Analysis

Assume that an economy is in long-run equilibrium. Increased expectations for future profits cause an unexpected surge in investment. This increased investment would shift the ______ curve, causing real GDP to _______________ in the short run.

An economy has recently experienced an increase in Aggregate Demand and is currently in the short-run equilibrium that resulted from this change. As this economy transitions from the short run into long run equilibrium the _____ curve will shift, resulting in a ___________ price level.