a. The Brazilian government decided to invest an additional $300million in preparation for the 2016 Olympic Games. Expla
Posted: Thu May 19, 2022 9:09 am
a. The Brazilian government decided to
invest an additional $300million in preparation for the 2016
Olympic Games. Explain, using aggregate demand and aggregate supply
diagrams, how this additional government expenditure affected
equilibrium price level and equilibrium national
output. (6 marks)
b. Explain three reasons why
the AD curve is downward sloping. (6 marks)
c. Why is the AS curve upward sloping (at
least in the short run)? (2 marks)
d. Explain two factors that
could shift the AD curve to the right. (3
marks)
e. Explain two factors
that could shift the AS curve to the right. (3
marks)
invest an additional $300million in preparation for the 2016
Olympic Games. Explain, using aggregate demand and aggregate supply
diagrams, how this additional government expenditure affected
equilibrium price level and equilibrium national
output. (6 marks)
b. Explain three reasons why
the AD curve is downward sloping. (6 marks)
c. Why is the AS curve upward sloping (at
least in the short run)? (2 marks)
d. Explain two factors that
could shift the AD curve to the right. (3
marks)
e. Explain two factors
that could shift the AS curve to the right. (3
marks)