f the Mexican government pursues expansionary fiscal policy in response to the recession, what will happen to aggregate Memand and aggregate supply in Mexico in the short run? Aggregate demand Short-run aggregate supply decreases decreases Aggregate demand Short-run aggregate supply increases decreases Aggregate demand Short-run aggregate supply decreases increases Aggregate demand Short-run aggregate supply increases increases

? G The following graph shows a hypothetical economy in long-run equilibrium at an expected price level of 120 and a natural output level of $600 billion. Suppose the government increases spending on building and repairing highways, bridges, and ports. Using the graph, shift the short-run aggregate supply (AS) curve or the aggregate demand (AD) curve to show the short-run impact of the increase in government spending. PRICE LEVEL 240 200 AS 160 120 80 40 0 0 200 400 600 AD 800 1000 1200 OUTPUT (Billions of dollars) ŏ AD 一 AS (?) In the short run, the increase in government spending on infrastructure causes the price level to the quantity of output to the price level people expected and the natural level of output. The increase in government spending will cause the unemployment rate to the natural rate of unemployment in the short run. Again, the following graph shows a hypothetical economy experiencing long-run equilibrium at the expected price level of 120 and natural output level of…

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- family purchasing changed when Covid and the lock-downs hit, Name some details of both quantity of purchasing and types of purchasing. - Be sure to define demand and aggregate demand and how your purchasing is part of Agg. Demand