Chapter 5, Problem 4P

Sub-part

A

To determine

The shifts and directions of aggregate demand and supply curve when the price level changes and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Sub-part

B

To determine

The shifts and directions of aggregate demand and supply curve when the consumer confidence declines and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Sub-part

C

To determine

The shifts and directions of aggregate demand and supply curve when the supply of resources increases and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Sub-part

D

To determine

The shifts and directions of aggregate demand and supply curve when the wage rate increases and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.