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 wages. Which graph most accurately shows how this would affect aggregate demand - aggregate supply model. Note that the new curve is shown in gray.