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Quantity of output and unemployment in short run

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Reference no: EM132488683

Q1. In each of the following senarios, use AD-AS model to show which curve(s), AD or/and AS  in the model would beaffected? which way would they shift? Show what happen to the price level, the quantity of output and unemployment in short run?

  1. increased immigration from abroad.
  2. technology advances within a nation.
  3. government offer a new investment tax credit.
  4. a recession overseas reduces a country's exports.
  5. government raises income taxes.
  6. a boom in stock market prices helps make people feel wealthier.
  7. people anticipate an increase in the expected price level.
  8. an increase in its capital stock.
  9. a change in weather patterns that makes farming more difficult.

Reference no: EM132488683

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