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Aggregate Supply and Demand Assignment

Aggregate Supply and Demand Assignment. Directions: On each of the supply graphs provided, move the AS or AD curve to indicate the influence of these statements on the Economy as a Whole. Define Aggregate Demand. Aggregate Demand - .

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Aggregate Supply and Demand Assignment

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  1. Aggregate Supply and Demand Assignment Directions: On each of the supply graphs provided, move the AS or AD curve to indicate the influence of these statements on the Economy as a Whole

  2. Define Aggregate Demand • Aggregate Demand - Find a picture to represent Aggregate Demand and Place Picture Here

  3. Changes in Consumption • Show the result of the scenario by shifting the curve in the correct direction. • Then, find a picture online to describe the following scenario. • Scenario: People become more concerned with saving and paying off debt because of a recession Price Levels Place Picture Here AD2 AD1 Quantity

  4. Changes in Consumption • Show the result of the scenario by shifting the curve in the correct direction. • Then, find a picture online to describe the following scenario. • Scenario: People’s fear of a recession ends; consumption increases Price Levels Place Picture Here AD2 AD1 Quantity

  5. Changes in Investment • Show the result of the scenario by shifting the curve in the correct direction. • Then, find a picture online to describe the following scenario. • Scenario: Firms begin to feel optimistic about the future and begin building new factories and building up their inventories Price Levels Place Picture Here AD2 AD1 Quantity

  6. Changes in Government Spending • Show the result of the scenario by shifting the curve in the correct direction. • Then, find a picture online to describe the following scenario. • Scenario: Congress cuts 30 Billion in education spending Price Levels Place Picture Here AD2 AD1 Quantity

  7. Changes in Government Spending • Show the result of the scenario by shifting the curve in the correct direction. • Then, find a picture online to describe the following scenario. • Scenario: Congress issues increased defense spending of 60 Billion Price Levels Place Picture Here AD2 AD1 Quantity

  8. Changes in Net Exports • Show the result of the scenario by shifting the curve in the correct direction. • Then, find a picture online to describe the following scenario. • Scenario: A global recession decreases demand for U.S. products Price Levels Place Picture Here AD2 AD1 Quantity

  9. Changes in Net Exports • Show the result of the scenario by shifting the curve in the correct direction. • Then, find a picture online to describe the following scenario. • Scenario: A boom in emerging markets such as China and India gives way to increased demand for U.S. products Price Levels Place Picture Here AD2 AD1 Quantity

  10. Define Aggregate Supply • Aggregate Supply - Find a picture to represent Aggregate Demand and Place Picture Here

  11. Land • Show the result of the scenario by shifting the curve in the correct direction. • Then, find a picture online to describe the following scenario. • Scenario:New oil reserves are found in the U.S. allowing an increase in the refining of gasoline. This allows American companies to expand production. Price Levels Place Picture Here AS1 AS2 Quantity

  12. Land • Show the result of the scenario by shifting the curve in the correct direction. • Then, find a picture online to describe the following scenario. • Scenario:OPEC cuts supply of oil worldwide. US firms lack the ability to ship at the same rate and thus fail to expand production. Price Levels Place Picture Here AS1 AS2 Quantity

  13. Labor • Show the result of the scenario by shifting the curve in the correct direction. • Then, find a picture online to describe the following scenario. • Scenario:The U.S. experiences increase in the number of skilled immigrants. Price Levels Place Picture Here AS1 AS2 Quantity

  14. Labor • Show the result of the scenario by shifting the curve in the correct direction. • Then, find a picture online to describe the following scenario. • Scenario:High corporate taxes lead to companies moving their factories to other countries. Price Levels Place Picture Here AS1 AS2 Quantity

  15. Capital • Show the result of the scenario by shifting the curve in the correct direction. • Then, find a picture online to describe the following scenario. • Scenario:New technology allows companies to replace human workers and increase productivity. Price Levels Place Picture Here AS1 AS2 Quantity

  16. Capital • Show the result of the scenario by shifting the curve in the correct direction. • Then, find a picture online to describe the following scenario. • Scenario:A massive earthquake destroys nearly all manufacturing factories along the west coast. Price Levels Place Picture Here AS1 AS2 Quantity

  17. Aggregate Supply and Demand Directions: On each of the Aggregate demand/supply graphs provided, move the demand or supply curve to indicate the influence of these statements on the markeT. Indicate the effect on price and quantity.

  18. Aggregate Supply and Demand • Congress cuts taxes and increases government spending • Move curve and arrow in the direction of the shift. Indicate the effect of price on and quantity. Price AS AS Place Picture Here Pe Pe AD AD Qe Qe Quantity of Oil

  19. Aggregate Supply and Demand • Consumer confidence slows due to Congress’ increase in taxes • Move curve and arrow in the direction of the shift. Indicate the effect of price on and quantity. Price AS AS Place Picture Here Pe Pe AD AD Qe Qe Quantity of Oil

  20. Aggregate Supply and Demand • Foreign countries begin purchasing massive amounts of U.S. products. • Move curve and arrow in the direction of the shift. Indicate the effect of price on and quantity. Price AS AS Place Picture Here Pe Pe AD AD Qe Qe Quantity of Oil

  21. Aggregate Supply and Demand • Technological improvements increase productivity. • Move curve and arrow in the direction of the shift. Indicate the effect of price on and quantity. Price AS AS Place Picture Here Pe Pe AD AD Qe Qe Quantity of Oil

  22. Aggregate Supply and Demand • The Federal Reserve increases the money supply and brings down interest rates significantly. Firms and consumers begin borrowing. • Move curve and arrow in the direction of the shift. Indicate the effect of price on and quantity. Price AS AS Place Picture Here Pe Pe AD AD Qe Qe Quantity of Oil

  23. Aggregate Supply and Demand • The Federal Reserve decreases the money supply and raisinterest rates significantly. Firms and consumers stop borrowing. • Move curve and arrow in the direction of the shift. Indicate the effect of price on and quantity. Price AS AS Place Picture Here Pe Pe AD AD Qe Qe Quantity of Oil

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