Economics Homework Help

I’m studying and need help with a Macro Economics question to help me learn.

• National income
• Consumption equal
• Government expenditures equal
• Export equal Import equal

Assume our economy right now on the potential output (where SRAS=LRAS), explain what happen to equilibrium price, equilibrium output and SRAS when there is supply shocks (increase cost of production) and what is this called? We could go back to the long run (potential output) through two scenarios; what are they