Draw a graph that plots Short-run Aggregate Supply, Long.Run Aggregate Supply, and Aggregate De- mand. Indicate...

 

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Draw a graph that plots Short-run Aggregate Supply, Long.Run Aggregate Supply, and Aggregate De- mand. Indicate the equilibrium point on the graph. Then, explain the shifts of the curves and the movement of equilibrium under the following events. 1. Government increases the income taxes 2. The war in Libya increases the price of oil globally 3. The lack of raw materials causing shortage of electronic chips used in many consumer electronics 4. New economic policy that attracts more investment Draw a new graph for each of these policy analysis. Show the movements of curves clearly. Explain the short run and the long run impact of each policy with a few sentences. Draw a graph that plots Short-run Aggregate Supply, Long.Run Aggregate Supply, and Aggregate De- mand. Indicate the equilibrium point on the graph. Then, explain the shifts of the curves and the movement of equilibrium under the following events. 1. Government increases the income taxes 2. The war in Libya increases the price of oil globally 3. The lack of raw materials causing shortage of electronic chips used in many consumer electronics 4. New economic policy that attracts more investment Draw a new graph for each of these policy analysis. Show the movements of curves clearly. Explain the short run and the long run impact of each policy with a few sentences.

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