THE AD - AS Model

For this exercise, explain what's happening to the goods market, the money market, and the labor market for each question where applicable. Use diagrams and words as well..

a) Explain why and how the AD curve shifts when the money supply increases.

b) Explain why and how the AD curve shifts when government spending increases.

c) Explain why and how the AD curve shifts when autonomous consumption increases.

d) Explain why and how the AS curve shifts both in the short run and in the middle run when the markup increases.

e) Explain why and how the AS curve shifts both in the short run and in the middle run when the unemployment benefit increases.