For each of the following events indicate whether the ad or, Ask an Expert

Economics

For each of the following events, indicate whether the AD or the AS curve shifts.

Briefly explain the reasoning behind your choice.

a. The government increases defense spending.

b. Oil prices rise dramatically.

c. Stock prices and housing values fall. (Hint - this would decrease household wealth.)

d. Our largest trading partners experience rapid economic growth and rising incomes.

e. Businesses become optimistic about the economy.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9305412

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