Question 1. For each situation described the scenario in few lines and make sure to answer i.e. (1) Demand-Pull or Cost-Push Inflation; (2) Increase or decrease in AD/AS; (3) Shifting of AD/AS.

Note: Your answer must not exceed more than 70 words.

Q. No.1-A)In his 2020 Cabinet address Prime Minister Imran Khan Calls for an increase in the Pakistan military presence across the globe to combat what he deemed a threat to the sovereignty of the Pakistani economy and CPEC.

Answer 1-A: (in few Lines)

(1) Demand-Pull or Cost-Push Inflation;

(2) Increase or decrease in AD/AS;

(3) Shifting of AD/AS.

Q. No.1-B)The Saudi Arabia disrupts oil production and supplies worldwide. This causes OPEC and commodities speculators to raise crude oil prices to record levels.

Answer 1-B: (in few Lines)

(1) Demand-Pull or Cost-Push Inflation;

(2) Increase or decrease in AD/AS;

(3) Shifting of AD/AS.

Q. No.1-C)The federal government raises the minimum wage to Rs. 25,000 per month.

Answer 1-C: (in few Lines)

(1) Demand-Pull or Cost-Push Inflation;

(2) Increase or decrease in AD/AS;

(3) Shifting of AD/AS.