Price level, P

New equilibrium

AD¹

AD²

SRAS²

SRAS¹

\bar{Y}

LRAS

Y₂

Change in nominal money supply

Price level, P

Output, Y

A = Point(yAxis)
C = Point(yAxis)
B = Point(xAxis)
a = Segment(A, B)
b = Segment(A, C)
D = Point(a)
c = OrthogonalLine(D, a)
E = (4, 9)
d = Segment(D, E)
F = Point(b)
G = (8, 4)
e = Segment(F, G)
P = 0 (slider from 0 to 0.5, step 0.1)
H = Intersect(e, d)
I: (0, y(F) * (1 + P))
f = If(1.5 ≤ x ≤ 6.5, 8 - x)
g(x) = f(x) + 4 * P
J = Intersect(g, d, (4, 4))
K: (8, 4 * (1 + P))
h = Segment(I, K)
k = false
L: (6.5, g(6.5))
M = Intersect(g, e, (4, 4))
i = OrthogonalLine(M, e)
N = Intersect(i, a)
j = Segment(M, N)
O = Point(f)
u = Vector(O, M)
Q = (2, 4)
R: (2, 4 * (1 + P))
v = Vector(Q, R)
text9: "1. Money supply 
    increase by " + P + ""
text8: "2. Price level 
    increase by " + P + ""
text12: "" + P + ""