Different sceneraios that causes shifts in the AD, SRAS or LRAS & chnages in the equilibrium real output & price level.
Elucidate how each of the following scenarios would cause the aggregate demand, short-run aggregate supply, and/or long-run aggregate supply curve to shift and in what direction. Also describe how this shift would affect the equilibrium price level and real GDP.
1. Consumers expect a recession.
2. Domestic technology improves.
3. Foreign price level rises.
4. Government spending falls.
5. Higher future income is expected.
6. Resource prices fall.