exam 3 shifts and movements

exam 3 shifts and movements - Downward Lower final...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Aggregate demand curve o Shifts Rightward Optimistic expectations Rise in wealth Small stock of physical capital Cut taxes (fiscal) Increase govt spending (fiscal) Bank increases money (monetary) Leftward Rise in interest rate Pessimistic expectations Falls in wealth Large stock of physical capital Raises taxes (fiscal) Cut govt spending (fiscal) Bank reduces money (monetary) o Movements Upward Higher final goods/service price
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Downward Lower final goods/service price Aggregate supply curve o Shifts Short run aggregate supply increasesrightward Commodity prices fall Nominal wages fall Workers become more productive Short run aggregate supply decreases leftward Commodity prices rise Nominal wages rise Workers become less productive o Movements Upward Rise in CPI...
View Full Document

Ask a homework question - tutors are online