Using the AD-AS diagram, explain the effect of the following on price and real income. (a)...

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Using the AD-AS diagram, explain the effect of the following on price and real income. (a) (b) (c) (d) Prediction of World War 3 next year Consumers are optimistic about the economy The government has increased sales and service tax The minimum age for working has been reduced Using the AD-AS diagram, explain the effect of the following on price and real income. (a) (b) (c) (d) Prediction of World War 3 next year Consumers are optimistic about the economy The government has increased sales and service tax The minimum age for working has been reduced

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A The prediction of World War 3 next year would likely result in a leftward shift of the Aggregate Demand AD curve Real Income Decrease Output and inc... View the full answer