(Solved): Use the aggregate supply and demand diagram given below to answer the following questions: a. Expl ...

Use the aggregate supply and demand diagram given below to answer the following questions: a. Explain what happens in the long run after the economy suffered a negative aggregate supply shock (assume no government intervention). b. Why might the government use fiscal policy following a negative aggregate shock rather than wait for the automatic adjustment process to return the economy to potential output? c. What is one negative impact associated with part (b)?