Consider an AD-AS model. How would the following events affect the equilibrium? Please, specify which curve shifts and
in which direction, and what happens to real GDP and the price level. Consider both short-run effects and long-run effects.
a. Stock prices rise.
b. Oil price falls.
c. A ransomware attack disables major infrastructure.
d. Confidence in the government’s competence falls.
e. The working age population shrinks.

Question

05-07-2024
Business

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Consider an AD-AS model. How would the following events affect the equilibrium? Please, specify which curve shifts and
in which direction, and what happens to real GDP and the price level. Consider both short-run effects and long-run effects.
a. Stock prices rise.
b. Oil price falls.
c. A ransomware attack disables major infrastructure.
d. Confidence in the government’s competence falls.
e. The working age population shrinks.

Sagot :

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