Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, a shift in neither curve, or a shift in both curves. If a shift is caused, indicate which curve shifts, and in which direction it shifts. What happens to aggregate output and the price level in each case? The price level changes. Consumer confidence increases. The supply of resources decreases.
Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, a shift in neither curve, or a shift in both curves. If a shift is caused, indicate which curve shifts, and in which direction it shifts. What happens to aggregate output and the price level in each case? The price level changes. Consumer confidence increases. The supply of resources decreases.
Chapter5: Introduction To Macroeconomics
Section: Chapter Questions
Problem 3.4P
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Determine whether each of the following would cause a shift of the aggregate
- The price level changes.
- Consumer confidence increases.
- The supply of resources decreases.
- The wage rate decreases.
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ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning