Exercises
AS-AD Model
AS-AD Model
In Apr 2020, the WTI crude oil price dropped to a historical low price of -$40/barrel. With an aid of AS-AD diagram, explain the effect on price level and output of the above event.
Skills required: apply AS-AD model in real-world application
In 2016-17 Budget, the Financial Secretary proposed to waive business registration fees for 2016-17. At the same time, the personal basic tax allowance was raised from $120 000 to $132 000. With an aid of AS-AD diagram, explain the effect on price level and output of the above event.
Skills required: apply AS-AD model in real-world application
In response to the pandemic, the government gives out $10,000 cash to eligible Hong Kong residents. Explain, with an aid of AS-AD diagram, the effect on price level and aggregate output of the policy.
Skills required: apply AS-AD model in real-world application