Question: Do the following events have their initial or short run impact on aggregate demand, long run aggregate supply, or short run aggregate supply? Do the


Do the following events have their initial or short run impact on aggregate demand, long run aggregate supply, or short run aggregate supply? Do the curves shift to the right or to the left? Show, using a graph for each question. a. The new government in Canada increases subsidies to producers of raw materials. AD/ AS/LRAS: Equilibrium Price: Equilibrium Quantity: b. There has been a decrease in nominal wages across Canada. AD/AS/ LRAS: Equilibrium Price: Equilibrium Quantity: c. Canadian producers expect the future demand for their products will be high due to increases in incomes earned across Canada AD/ AS/LRAS: Equilibrium Price: Equilibrium Quantity
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
