Answer Happy

Economists use the model of aggregate supply and aggregate
demand (AS-AD
model) to explain short run fluctuations of GDP around its long run
trend.
i) In the context of the AS-AD model, explain which curve(s) the
following
events would shift, which way, and why:
a. The government increases income tax in their budget
b. An improvement in existing technology
c. There is a change in expectations and firms expect the price
level to be
higher in the future
d. Consumers sentiment changes and they feel more pessimistic
about
the economy
e. The central bank engages in open market operations and buys
bonds
from the public.