04/12/2021

Which curve will shift and which direction will it shift?

Consumers respond to high levels of debt by reducing their purchases of durable goods.

• Aggregate Demand increases to the right

• Aggregate Demand decreases to the left

• Short-Run Aggregate Supply increases to the right

• Short-Run Aggregate Supply decreases to the left

Which curve will shift and which direction will it shift?

Unions are more effective so that wage rates increase

• Aggregate Demand increases to the right

• Aggregate Demand decreases to the left

• Short-Run Aggregate Supply increases to the right

• Short-Run Aggregate Supply decreases to the left

Which curve will shift and which direction will it shift?

Reduced business confidence leads to a reduction in investment spending.

• Aggregate Demand increases to the right

• Aggregate Demand decreases to the left

• Short-Run Aggregate Supply increases to the right

• Short-Run Aggregate Supply decreases to the left

Which curve will shift and which direction will it shift?

Oil companies successfully increase oil prices

• Aggregate Demand increases to the right

• Aggregate Demand decreases to the left

• Short-Run Aggregate Supply increases to the right

• Short-Run Aggregate Supply decreases to the left

Which curve will shift and which direction will it shift?

Government spending increases with no increase in taxes

• Aggregate Demand increases to the right

• Aggregate Demand decreases to the left

• Short-Run Aggregate Supply increases to the right

• Short-Run Aggregate Supply decreases to the left

Which curve will shift and which direction will it shift?

Labor productivity increases dramatically

• Aggregate Demand increases to the right

• Aggregate Demand decreases to the left

• Short-Run Aggregate Supply increases to the right

• Short-Run Aggregate Supply decreases to the left

Which curve will shift and which direction will it shift?

Survey shows consumer confidence jumps.

• Aggregate Demand increases to the right

• Aggregate Demand decreases to the left

• Short-Run Aggregate Supply increases to the right

• Short-Run Aggregate Supply decreases to the left

Which curve will shift and which direction will it shift?

Giant natural gas discovery decreases energy prices

• Aggregate Demand increases to the right

• Aggregate Demand decreases to the left

• Short-Run Aggregate Supply increases to the right

• Short-Run Aggregate Supply decreases to the left

Which curve is shows where the economy is today?

• Short Run Aggregate Supply

• Long Run Aggregate Supply

Which curve is shows where the economy should be?

• Short Run Aggregate Supply

• Long Run Aggregate Supply