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Aggregate demand and supply in us history In the following four questions, use the aggregate demand and aggregate supply moded to describe the economic effects

Aggregate demand and supply in us history

In the following four questions, use the aggregate demand and aggregate supply moded to describe the economic effects of each event/scenario described below. You will NOT draw a graph, but it will explain what happens in words. ( Hint: you can use your scratch paper to draw the graph if that helps with your explanation.)

Explain briefly the following:

1. What caused the change? (what non-price determinant of demand or supply changed? For example, income increased, costs of production decreased, etc.)

2. What happened to AD or AS? (increase, decrease, or unchanged)

- (Hint: to simplify your analysis, assume only one curve is shiting either Aggregate Demand or Aggregate Supply only.)

3. What was the effect on Real GDP and the Price-level (increase, decrease, or unchanged)

Q2. (2020) A proposal for a green energy infrastructure program could create renewable energy infrastructure that would produce clean power for decades. What are the long run effects?

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