Fill in the blanks. Please type you answers in the boxes below in order. Assume the US economy is in both short-run and long-run equilibrium. Now the
prices of imported semiconductor chips have increased significantly. Semiconductor
chips are important inputs in the production of many electronic products.
In the short run, this will (increase or decrease) the aggregate (supply or
demand), resulting in a (higher or lower) price level and (higher or
lower) real GDP. This situation is called
In the long run, the (AD or SRAS or LRAS) curve will shift to the (left or
right), causing the price level to (increase or decrease) and real GDP to
(increase or decrease), bringing the economy back to the long-run equilibrium at the
full-employment level of output.