Worksheet 19. 1: AD-AS- MACRO
Stock market crashes dog investors lose billions
A D, C, left, negative negative
US government decreases the corporate income tax
A S; input costs; right; negative; positive
US government increases tax on capital gains(investments)
AD, investment spending, left, negative negative
US businesses worry about recession being around the corner
AD; ; left; negative; negative
Increase in US business inventories
AD; ; right; positive; positive
Legislature decides to increase the tax on imported goods
AD; ; right; positive; positive
US government cuts income taxes for all Americans
AD; ; right; positive; positive
Consumer debt reaches is an all-time high
AD; ;left; negative; negative
Consumer suspect there is a recession coming
AD; consumer spending; left; negative; negative
Interest rate increases
AD; consumer spending; left; negative; negative
Consumer wealth increases
AD; consumer spending; right; positive; positive
China announces it will start importing US cars
AD; exports increase; right; positive; positive
The interest rate decreases
AD; investment spending; right; positive; positive
Oil prices fall
AS; input costs; right; negative; positive
Cost of natural resources increases
AS; input; left; positive; negative
US government signed a treaty that requires businesses to be pollution free
AS; production cost; left; positive, negative
Increase in the price of imported computer chips due to an earthquake in Taiwan
AS; production costs; left; positive; negative
Productivity increases due to the Internet
AS; productivity; right; negative; positive
How to change aggregate supply
Changes in expectations of inflation, commodity, nominal wages, productivity, business taxes and subsidies
An increase in investment leads to______in the price level and_____in real GDP in the short run
Increase increase
Expectations of a lower rate of inflation shift the_______to the______
SRAs to the right
