Consumer confidence grows for third straight month. 2. A technological breakthrough lowers the cost of energy. 3. The government engages in a new highway building program.

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter5: Introduction To Macroeconomics
Section: Chapter Questions
Problem 3.3P
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Use an aggregate supply (upsloping range) and aggregate demand diagram to demonstrate the effect of each of the following.  For each problem state the determinant and what happens to the price level and RGDP.

1. Consumer confidence grows for third straight month.

2. A technological breakthrough lowers the cost of energy.

3. The government engages in a new highway building program.

4. A series of natural disasters disrupt production and delivery of goods.

5. Laws are tightened to make immigration more difficult and this leads to labor shortages.

6.  Interest falls.

7. Productivity rises.

8. Labor strikes cause an interruption in shipments of parts.

9. Increased graduation rates for schools lead to more-skilled workforce.

10. Stock and bonds markets soar.

 

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