Determine whether the scenarios below shift the short-run aggregate supply curve ("AS") or the aggregate demand curve ("AD") to the right or to the left: A. Higher interest rates reduce return rate in investment B. The labor force falls as many workers retire C. Improved organization and production result in increased productivity D. Local governments increase spending on roads and police security 1. Shift AS left ✓2. Shift AD left 3. Shift AS right 4. Shift AD right
Determine whether the scenarios below shift the short-run aggregate supply curve ("AS") or the aggregate demand curve ("AD") to the right or to the left: A. Higher interest rates reduce return rate in investment B. The labor force falls as many workers retire C. Improved organization and production result in increased productivity D. Local governments increase spending on roads and police security 1. Shift AS left ✓2. Shift AD left 3. Shift AS right 4. Shift AD right
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter10: Dynamic Change, Economic Fluctuations, And The Ad-as Model
Section: Chapter Questions
Problem 2CQ
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