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Need some help with these economic questions, thanks! For each scenario in the following table, indicate whether the aggregate supply curve will shift left or
Need some help with these economic questions, thanks!
For each scenario in the following table, indicate whether the aggregate supply curve will shift left or right or will not shift. Scenario Shift The price of gasoline increases because of a catastrophic oil spill. Labor unions and all other workers are able to negotiate a wage increase. Power companies switch to solar power, and the price of electricity falls. The federal government increases the excise tax on gasoline in order to finance a deficit.For each scenario in the following table, indicate which curve is affected, the direction of the shift, and the effect on the price level, real GDP, and employment. (Note: Assume the economy is operating in the intermediate range of its aggregate supply curve.) Curve Shift The Effect on . . . Scenario (AS or AD) (Right or Left) Price Level Real GDP Employment The price of crude oil rises significantly. Spending on national defense doubles. The price of imported goods decreases. New technology raises labor productivityStep by Step Solution
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