4.

Determine the effect on the short-run aggregate demand (AD) curve or short-run aggregate

supply (SRAS) curve for each of the following scenarios.

Use a ruler and sketch a graph

to illustrate each answer.

a.

Households and businesses have more optimistic expectations regarding future economic

performance.

b.

There are higher levels of investment spending by businesses.

c.

The Bank of Canada decreases the money suppl

d.

Labor productivity increases in the macro economy.

e.

Technological progress occurs in the econo