Review Flashcards
1
Q
increase in expected future income, inflation, or profits
A
increase AD
2
Q
tax cut/ increase in transfer payments
A
increase in AD
3
Q
increase in disposable income
A
increase AD
4
Q
increase in Government expenditure
A
increase in AD
5
Q
increase in Q of money
A
increase in AD
6
Q
increase in exchange rate
A
decrease in AD (inverse)
7
Q
increase in foreign income
A
increase in AD
8
Q
increase in full employment
A
increase in AD & AS
9
Q
increase in quantity of capital supplied
A
increase in AD & AS
10
Q
advance in technology
A
increase in AD & AS
11
Q
lower money wage rate
A
SRAS shifts right
12
Q
stray away from full employment
A
change in SRAS
13
Q
expectations about inflation
A
change in SRAS
14
Q
expected rise in inflation
A
SRAS shifts left (rise in MWR)
15
Q
higher full employment
A
SRAS shifts right (fall in MWR)
