Vice versa applies in all cases. An increase in real wealth means the value of people s assets increase. Let AD shift right unexpectedly . Let AD shift left unexpectedly. AS shift right.
Price level falls and real GDP rises.
This is unsustainable if no LRAS shift occurs. Thus, profits shrink, causing AS to shift left toward its original position. Unanticipated SRAS Decrease Let AS shift left. Price level rises and real GDP falls. This is unsustainable if no LRAS shift occurs.