Question: Chapter 12: Aggregate Demand and Aggregate Supply Q2. Explain whether each of the following events will increase, decrease or have no effect on ling-run aggregate

Chapter 12: Aggregate Demand and Aggregate Supply

Q2. Explain whether each of the following events will increase, decrease or have no effect on ling-run aggregate supply.

a)Malaysia experiences a wave of immigration.

b)Intel invents a new and more powerful computer chip.

Chapter 13: Influence of Monetary and Fiscal Policy on Aggregate Demand

Q1. Explain how each of the following developments would affect the supply of money, the demand for money, and the interest rate. Illustrate your answers with diagrams.

a)BNM's securities trades buy securities in open-market operations.

b)An increase in credit-card availability reduces the cash people hold.

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