Try Another Version of These Questions

Question 1

Suppose that there is a

**positive**aggregate supply shock. Which graph most accurately shows how this would affect the aggregate demand - aggregate supply model? Note that the new curve is shown in gray. AS curve shifts right:

Hint

Box 1: Select the best answer

Question 2

Suppose that there is a

**negative**aggregate supply shock. Which graph most accurately shows how this would affect aggreagte demand - aggregate supply model. Note that the new curve is shown in gray. AS curve shifts left:

Hint

Box 1: Select the best answer

Question 3

Suppose that we observe

**decrease**in the price of oil. Which graph most accurately shows how this would affect the aggregate demand - aggregate supply model? Note that the new curve is shown in gray. AS curve shifts right:

Hint

Box 1: Select the best answer

Question 4

Suppose that we observe

**increase**in energy prices. Which graph most accurately shows how this would affect aggregate demand - aggregate supply model. Note that the new curve is shown in gray. AS curve shifts left:

Hint

Box 1: Select the best answer