Exercises
AS-AD Model
AS-AD Model
With an aid of AS-AD diagram, explain the effect on price level and output when consumption expenditure decreases in the short run and the government cuts taxes in the long run.
Skills required: understand the mixed effect of two events and apply it to the graph with logical explanations
With an aid of AS-AD diagram, explain the effect on price level and output when investment expenditure increases in the short run and the cost of production decreases in the long run.
Skills required: Skills required: understand the mixed effect of two events and apply it to the graph with logical explanations
With an aid of AS-AD diagram, explain the effect on price level and output when the government cuts the profit tax rate.
Skills required: understand the effect of a single event and its adjustment, then apply it to the graph with logical explanations
Related concepts:
With an aid of AS-AD diagram, explain the effect on price level and output when government expenditure decreases.
Skills required: understand the effect of a single event and its adjustment, then apply it to the graph with logical explanations
Related concepts:
With an aid of AS-AD diagram, explain the effect on output and price level when domestic products become more attractive overseas.
Skills required: understand the effect of a single event and its adjustment, then apply it to the graph with logical explanations
Related concepts:
With an aid of AS-AD diagram, explain the effect on output and price level when imported goods become more desirable to local customers.
Skills required: understand the effect of a single event and its adjustment, then apply it to the graph with logical explanations
Related concepts: