As you know, supply and demand shifts are caused by one of their determinants. Shifts in aggregatedemand (AD) show the effect of events on price level and Real GDP. Any event that causes a change inconsumer, business, or government spending or any change in net exports (C+l+G+Xn) will shift AD.Any event that causes a change in production costs or increases productivity will shift aggregatesupply (AS).Decide if the following events are Micro, shifting supply or demand, or Macro, shifting AD or AS. Givethe direction in which the graph shifts.DemandSituationAggregateSupplyAggregateDemandSupplySales of Atlanta Braves gear growswith the success of the team.1.The President and Congress pass atrillion dollar stimulus bill toprovide aid during recession.2.3.Salmonella outbreak in peanutprocessing plants threatenslunches for school children.4.Pomegranates are shown to becancer fighting superfoods.Value of U.S. dollars declines,exports increase.5.Global oil prices tank as shalefracking surges.6.7.Housing market crashes. FederalReserve slashes interest rates.House votes to block EPAregulations on coal fired electricityplants.9. Choose one of the Situations that changes SRAS or AD. Draw the shift in SRAS or AD and explain whathappens to inflation, unemployment, and real GDP.

(1) Micro event : Demand curve shifts out (2) Macro event : AD shifts out (3) Micro issue : Supply…

As you know, supply and demand shifts are caused by one of their determinants. Shifts in aggregate demand (AD) show the effect of events on price level and Real GDP. Any event that causes a change in consumer, business, or government spending or any change in net exports (C+l+G+Xn) will shift AD. Any event that causes a change in production costs or increases productivity will shift aggregate supply (AS). Decide if the following events are Micro, shifting supply or demand, or Macro, shifting AD or AS. Give the direction in which the graph shifts.

As you know, supply and demand shifts are caused by one of their determinants. Shifts in aggregate demand (AD) show the effect of events on price level and Real GDP. Any event that causes a change in consumer, business, or government spending or any change in net exports (C+l+G+Xn) will shift AD. Any event that causes a change in production costs or increases productivity will shift aggregate supply (AS). Decide if the following events are Micro, shifting supply or demand, or Macro, shifting AD or AS. Give the direction in which the graph shifts.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter20: Aggregate Demand And Supply

Section: Chapter Questions

Problem 6SQ

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