Q1. Ineach of the following scenario, useAD-AS model to show whichcurve(s), AD or/and ASinthemodelwouldbe affected?whichwaywouldtheyshift?Show what happen to the price level,thequantityofoutputand unemploymentin short run?

1. increasedimmigrationfromabroad.
2. technologyadvanceswithinanation.
3. governmentofferanewinvestmenttaxcredit.
4. arecessionoverseasreducesacountry'sexports.
5. governmentraisesincometaxes.
6. aboominstockmarketpriceshelpsmakepeoplefeelwealthier.
7. peopleanticipateanincreaseintheexpectedpricelevel.
8. anincreaseinitscapitalstock.
9. achangeinweatherpatternsthatmakesfarmingmoredifficult.

Q2. Identifythevariablesthatcouldcauseshiftsinboththeshort-runandlong-runaggregate-supplycurves? Identify which scenarios in Question 1shiftsinbothAS curves.

Q3. Otherthingsthesame,whathappensinlongruntothepricelevelandquantityofoutputafter:

1. acontractioninaggregatedemand.
2. anadverseshiftintheshortrunaggregatesupplycurve.