An increase in the money supply. A decrease in the money supply. Easier bankruptcy laws makes banks unwilling to issue credit cards to bad credit risks. Workers get lazier. Scientists figure out how to make better computers.
Consumers rent fewer videos and go to more movies instead.
In 2-3 sentences, explain what happens. The dashed horizontal line shows the maximum price level. At this price level, AD exceeds AS, so there are economy-wide shortages. Expect economy-wide lines, corruption, and black markets. Then diagram and explain what happens if AD increases and the government leaves the legal price level unchanged.