Suppose the economy is starting from a situation of long-run equilibrium. in this case, we know that its equilibrium output (y*) is v its potential infation rate percent) ras output () as, starting from its long-run equilibrium at point 1 in the figure to the right, suppose the economy experiences a negative demand shock. 1) using the line drawing tool, shift a single curve to show the initial short-run effect. properly label your curve. 2) using the point drawing tool, identify the new short-run equilibrium. label this point 2 carefully follow the instructions above, and only draw the required objects in the short-run equilibrium at point 2, labor markets would likely see increasing ad, yand corresponding weaker pressure on wages and costs that enables aggregate output, (s trillions) firms to raise their at a less rapid rate graphically, this chain reaction produces shifts in the short-run aggregate supply curve that are these shifts in the short-run aggregate supply curve result in output gaps that are y and the economy is evolving toward an eventual new long-run