Question
For the following changes in an economy, explain using (both text and draw graphs) using an LRASAD-SRAS framework, whether short-run aggregate supply or long-run aggregate
For the following changes in an economy, explain using (both text and draw graphs) using an LRASAD-SRAS framework, whether short-run aggregate supply or long-run aggregate supply will be affected. Also, indicate the direction of the change in short and long run, effect on price, unemployment and real GDP. [Assume the economy is at the long run equilibrium & use a new graph for each question]. [3.0] a. Department of Homeland Security implements new policy restricting immigration.b. A favorable supply shock (decline in the price of oil) c. New shale deposits are found in North Dakota. d. A category 3 hurricane damages orange plantations in Florida. e. The stock of capital in the economy increases.
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