III. What will happen to aggregate demand and aggregate supply (or with both] as a result of events listed below? (a) Dene the causes of the changes. (b) In each case dene what curve will shift and in what direction [there will be a shift of the AD curve, the SEAS curve, the LRAS curve or of the two curves, or of all the three curves). Hint: give your answers in the form of the following table and do not rewrite the tasks. - Cause ofthe shame lI {it (I!) (iii) (ii?) (V) (vi) (vii) {viii} (ix) (X) (Ki) (xii) (xiii) (xiv) (XV) [xvi] (xvii) The government constructs new roads and bridges. A large iron-eld hast been discovered that reduces the price of iron ore. The banking system increases the supply of loans. The government raises unemployment benefits. Consumers feel more secure in their jobs and become more optimistic. A technological advance takes place in the application of computers to the manufacture of steel. There is an increase in the labour force participation rate. Due to the fall in the real wages resulting from the increase in the price level rms hire more workers. The government increases the minimum wage. Workers expect higher prices in the future and demand an increase in wages. The prolonged and very deep recession led to the sharp increase in the long-term unemployment. The government implements the investment tax credit. The market power of trade unions in the labor market falls because of the recession in the economy. The Central Bank sells goverrunent bonds in the open market. Economic agents decrease their inationary expectations. A drought destroys much of the wheat crop. The government decreases the tax rate on interest income from household savings. {xviii} There are large improvements in education and training. (xix) (XX) {xxi} [xxii] The government decreases military spending. Businesses decrease their confidence about future returns on capital. The price of imported raw materials that are used in key manufacturing industries increased substantially. The government increases restrictions on pollution emissions in an attempt to combat acid ran-I