Problem
1. Sketch out a normal business cycle, labeling all the parts and the axes. How might a long implementation lag affect the economy's recovery?
2. Describe whether the following changes cause short-run aggregate supply to increase, decrease, or neither.
a. The price level increases.
b. Input prices decrease.
c. Firms and workers expect the price level to fall.
d. The price level decreases.
e. New policies increase the cost of meeting government regulations.
f. The number of workers in the labor force increases.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.