Question 4

Evaluate the following statements using relevant diagrams and provide detailed explanations. The statements describe events that might shift aggregate demand (AD), aggregate supply (AS), both or neither. Clearly label your diagrams.

A)A recent economic report suggests that consumer confidence has increased.

B)Apple Inc. has announced a 50% discount on its new generation iPad devices for university students.

C)After a prolonged acceleration in economic activity, the government raises the rate of personal income tax.

D)A continuing economic expansion has drawn in many working age people (and their families) from neighbouring countries in search of jobs and better lives.