This figure for a monetary union member like Spain uses a two-panel diagram to illustrate a positive demand shock. The top panel contains an upward-sloping Phillips curve, plotting inflation (from -3% to 7%) against employment (N). The initial equilibrium is at point 'A', with ~2% inflation at the supply-side equilibrium employment level (NSSE); the curve steepens past this point. The bottom panel shows the multiplier model, with aggregate demand (AD) and output (Y) on the axes (50-100 billion GBP). The initial equilibrium 'A' is at the intersection of the AD0 curve and the 45-degree line (Y=AD). The shock is represented by an upward shift of the aggregate demand curve to AD1.