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Q5(a)-Type either rightward or leftward for each event in the second column of the table below. Event Direction of shift in AD 1. A

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Q5(a)-Type either rightward or leftward for each event in the second column of the table below. Event Direction of shift in AD 1. A reduction in household wealth. 2. The value of the Australian dollar appreciates against our trading partners' currencies. 3. A decrease in business' optimism above future profitably. 4. The government improves city bike paths. 5. The RBA buys more Commonwealth Government Securities (CGS) Q5(b) - Discussion: Graph Choice (1 or 2 or 3): LRAS SRAS PL B PL A * AD AD Y YFE Price level 0 Graph 1 RGDP Price level PL PL 0 A Graph 2 LRAS B Y Y YFE SRAS AD AD RGDP Price level PL PL 0 Y Graph 3 A LRAS B Y YFE SRAS AD SRAS2 RGDP

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