aggregate supply and demand assignment
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Aggregate Supply and Demand Assignment. Directions: On each of the supply graphs provided, move the AS or AD curve to indicate the influence of these statements on the Economy as a Whole. Define Aggregate Demand. Aggregate Demand - . - PowerPoint PPT PresentationTRANSCRIPT
DIRECTIONS:ON EACH OF THE SUPPLY GRAPHS PROVIDED, MOVE THE AS OR AD CURVE TO INDICATE THE
INFLUENCE OF THESE STATEMENTS ON THE ECONOMY AS A WHOLE
Aggregate Supply and Demand Assignment
• Aggregate Demand - Define Aggregate Demand
Find a picture to represent Aggregate Demand and Place Picture Here
Show the result of the scenario by shifting the curve in the correct direction.
Then, find a picture online to describe the following scenario.
Scenario: People become more concerned with saving and paying off debt because of a recession
Changes in Consumption
AD1
Quantity
Price Levels
AD2
Place Picture Here
Show the result of the scenario by shifting the curve in the correct direction.
Then, find a picture online to describe the following scenario.
Scenario: People’s fear of a recession ends; consumption increases
Changes in Consumption
AD1AD2
Place Picture Here
Quantity
Price Levels
Show the result of the scenario by shifting the curve in the correct direction.
Then, find a picture online to describe the following scenario.
Scenario: Firms begin to feel optimistic about the future and begin building new factories and building up their inventories
Changes in Investment
AD1AD2
Place Picture Here
Quantity
Price Levels
Show the result of the scenario by shifting the curve in the correct direction.
Then, find a picture online to describe the following scenario.
Scenario: Congress cuts 30 Billion in education spending
Changes in Government Spending
AD1AD2
Place Picture Here
Quantity
Price Levels
Show the result of the scenario by shifting the curve in the correct direction.
Then, find a picture online to describe the following scenario.
Scenario: Congress issues increased defense spending of 60 Billion
Changes in Government Spending
AD1AD2
Place Picture Here
Quantity
Price Levels
Show the result of the scenario by shifting the curve in the correct direction.
Then, find a picture online to describe the following scenario.
Scenario: A global recession decreases demand for U.S. products
Changes in Net Exports
AD1AD2
Place Picture Here
Quantity
Price Levels
Show the result of the scenario by shifting the curve in the correct direction.
Then, find a picture online to describe the following scenario.
Scenario: A boom in emerging markets such as China and India gives way to increased demand for U.S. products
Changes in Net Exports
AD1AD2
Place Picture Here
Quantity
Price Levels
• Aggregate Supply - Define Aggregate Supply
Find a picture to represent Aggregate Demand and Place Picture Here
Show the result of the scenario by shifting the curve in the correct direction.
Then, find a picture online to describe the following scenario.
Scenario: New oil reserves are found in the U.S. allowing an increase in the refining of gasoline. This allows American companies to expand production.
Land
AS1
AS2
Place Picture Here
Quantity
Price Levels
Show the result of the scenario by shifting the curve in the correct direction.
Then, find a picture online to describe the following scenario.
Scenario: OPEC cuts supply of oil worldwide. US firms lack the ability to ship at the same rate and thus fail to expand production.
Land
AS1
AS2
Place Picture Here
Quantity
Price Levels
Show the result of the scenario by shifting the curve in the correct direction.
Then, find a picture online to describe the following scenario.
Scenario: The U.S. experiences increase in the number of skilled immigrants.
Labor
AS1
AS2
Place Picture Here
Quantity
Price Levels
Show the result of the scenario by shifting the curve in the correct direction.
Then, find a picture online to describe the following scenario.
Scenario: High corporate taxes lead to companies moving their factories to other countries.
Labor
AS1
AS2
Place Picture Here
Quantity
Price Levels
Show the result of the scenario by shifting the curve in the correct direction.
Then, find a picture online to describe the following scenario.
Scenario: New technology allows companies to replace human workers and increase productivity.
Capital
AS1
AS2
Place Picture Here
Quantity
Price Levels
Show the result of the scenario by shifting the curve in the correct direction.
Then, find a picture online to describe the following scenario.
Scenario: A massive earthquake destroys nearly all manufacturing factories along the west coast.
Capital
AS1
AS2
Place Picture Here
Quantity
Price Levels
DIRECTIONS:ON EACH OF THE AGGREGATE DEMAND/SUPPLY
GRAPHS PROVIDED, MOVE THE DEMAND OR SUPPLYCURVE TO INDICATE THE INFLUENCE OF THESE
STATEMENTS ON THE MARKET.INDICATE THE EFFECT ON PRICE AND QUANTITY.
Aggregate Supply and Demand
Congress cuts taxes and increases government spending Move curve and arrow in the direction of the shift. Indicate the
effect of price on and quantity.
Aggregate Supply and Demand
AD
Quantity of Oil
Price
Pe
AS
Pe
Qe
Place Picture Here
Qe
AS
AD
Consumer confidence slows due to Congress’ increase in taxes Move curve and arrow in the direction of the shift. Indicate the
effect of price on and quantity.
Aggregate Supply and Demand
AD
Quantity of Oil
Price
Pe
AS
Pe
Qe
Place Picture Here
Qe
AS
AD
Foreign countries begin purchasing massive amounts of U.S. products.
Move curve and arrow in the direction of the shift. Indicate the effect of price on and quantity.
Aggregate Supply and Demand
AD
Quantity of Oil
Price
Pe
AS
Pe
Qe
Place Picture Here
Qe
AS
AD
Technological improvements increase productivity. Move curve and arrow in the direction of the shift. Indicate the
effect of price on and quantity.
Aggregate Supply and Demand
AD
Quantity of Oil
Price
Pe
AS
Pe
Qe
Place Picture Here
Qe
AS
AD
The Federal Reserve increases the money supply and brings down interest rates significantly. Firms and consumers begin borrowing.
Move curve and arrow in the direction of the shift. Indicate the effect of price on and quantity.
Aggregate Supply and Demand
AD
Quantity of Oil
Price
Pe
AS
Pe
Qe
Place Picture Here
Qe
AS
AD
The Federal Reserve decreases the money supply and raisinterest rates significantly. Firms and consumers stop borrowing.
Move curve and arrow in the direction of the shift. Indicate the effect of price on and quantity.
Aggregate Supply and Demand
AD
Quantity of Oil
Price
Pe
AS
Pe
Qe
Place Picture Here
Qe
AS
AD