Question
Please provide answers to the following questions and directions. 6.Aggregate demand increases.Which direction does the curve shift?Draw the shift on an AD-SRAS graph.What happens to
Please provide answers to the following questions and directions.
6.Aggregate demand increases.Which direction does the curve shift?Draw the shift on an AD-SRAS graph.What happens to price level, real GDP, unemployment, and income?
7.Aggregate demand decreases.Which direction does the curve shift? Draw the shift on an AD-SRAS graph.What happens to price level, real GDP, unemployment, and income?
8.Aggregate supply increases.Which direction does the curve shift?Draw the shift on an AD-SRAS graph.What happens to price level, real GDP, unemployment, and income?
9.Aggregate supply decreases.Which direction does the curve shift?Draw the shift on an AD-SRAS graph.What happens to price level, real GDP, unemployment, and income?
For each of the following, determine whether aggregate demand or short-run aggregate supply shifts and in which direction it shifts.
a.The real interest rate rises.
b.America's education system improves.
c.The government increases its purchases.
d.The government increases subsidies for businesses.
e.The price of gasoline increases.
f.The stock market declines by 10%.
g.Business taxes are increased.
h.Businesses are more optimistic about their ability to sell their goods in the future.
i.The government reduces personal income taxes.
j.Government regulations of businesses are increased.
k.The leading importer of American goods in Canada.Canada's economy goes into a recession.
l.Real interest rates decrease.
m.Wages decrease across the economy.
n.The dollar appreciates causing net exports to decrease.
o.Consumer confidence in the economy falls.
p.The productivity of American workers improves.
q.Income in Mexico, a major trading partner of the U.S., increases.
r.Wages increase throughout the economy.
s.The dollar depreciates, causing net exports to increase.
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