Determine whether the scenarios below shift the short-run aggregate supply curve ("AS") or the aggregate demand curve ("AD") to the right or to the left: A. Higher interest rates reduce return rate in investment B. The labor force falls as many workers retire C. Improved organization and production result in increased productivity D. Local governments increase spending on roads and police security 1. Shift AS left ✓2. Shift AD left 3. Shift AS right 4. Shift AD right

Determine whether the scenarios below shift the short-run aggregate supply curve ("AS") or the aggregate demand curve ("AD") to the right or to the left: A. Higher interest rates reduce return rate in investment B. The labor force falls as many workers retire C. Improved organization and production result in increased productivity D. Local governments increase spending on roads and police security 1. Shift AS left ✓2. Shift AD left 3. Shift AS right 4. Shift AD right

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 15QP

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