Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, neither, or both. Which curve shifts, and in which direction? What happens to aggregate output and the price level in each case?

a. The price level changes

i. Which curve shifts?

ii. Which direction does it shift?

iii. What happens to aggregate output?

iv. What happens to the price level?

b. Consumer confidence declines

i. Which curve shifts?

ii. Which direction does it shift?

iii. What happens to aggregate output?

iv. What happens to the price level?

c. The supply of resources increases

i. Which curve shifts?

ii. Which direction does it shift?

iii. What happens to aggregate output?

iv. What happens to the price level?

d. The wage rate increases

i. Which curve shifts?

ii. Which direction does it shift?

iii. What happens to aggregate output?

iv. What happens to the price level?