AD–AS graph of a recessionary gap closed by expansionary fiscal policy (AD shifts right)

An example figure from the AD–AS Model generator.

AD–AS graph of price level against real GDP with no numbers on the axes: a vertical green LRAS line, an upward-sloping red SRAS line, and a blue AD₁ line crossing SRAS at a dot labeled E₁, to the left of LRAS; two arrows point right to AD₂, which crosses SRAS on LRAS at a dot labeled E₂. Dashed lines run from E₁ to both axes and from E₂ to the price level axis, marked PL₁ and PL₂ on the price level axis and Y₁ and Yf on the real GDP axis, and a brace under the axis from Y₁ to Yf is labeled Recessionary gap — An economy in a recessionary gap brought to full employment by an increase in aggregate demand, drawn with no numbers, as AP graphs are. AD₁ and SRAS cross at E₁, at real GDP Y₁, short of full-employment output Yf where LRAS stands, and the gap between them is braced under the axis. AD shifts right to AD₂, which crosses SRAS on LRAS at E₂: real GDP rises to Yf and the price level rises from PL₁ to PL₂.

Edit this figure Download PNG

Editing opens it in AD–AS Model with these settings, to change anything and copy or download your own.

Free to use in your tests, worksheets, slides or anything else, no credit needed. Public domain under CC0 1.0. How to reuse our figures

More AD–AS Model examples

Make your own in AD–AS Model →