![equil note equil note](https://thegadgetflow.com/wp-content/uploads/2015/06/Equil-Smartpen-2-–-Transfer-Handwritten-Notes-to-the-Cloud-2.jpg)
That's where a number of new digital pens hope to turn the page, so to speak. With those non-digital tools, I take daily notes at meetings or write down to-dos, but then I regularly leave those notes at my desk or in another bag. 22, 2013 - intro: Despite the fact that I carry around a phone, a tablet, a laptop and a bunch of other gadgets in my bag every day, I still drag around an old-fashioned pen and paper. There will simply be a 'move along' the aggregate demand curve, not a shift. An improvement in productivity will mean that firms are more efficient (shifting aggregate supply to the right), but it will not shift aggregate demand. Your answer has been saved.Īn improvement in productivity will shift both the aggregate demand and supply curves to the right. An increase in expenditure tax will reduce consumption (shifting aggregate demand to the left) and will also represent an increase in costs (shifting aggregate supply to the left as well). Your answer has been saved.Īn increase in expenditure tax will shift both the aggregate demand and supply curves to the left. Try rotating the AS curve and then drag the AD curve and see the impact on the equilibrium price level. The less responsive is AS to a rise in AD, the more prices will rise for a given increase in AD. An increase in costs will shift the supply curve to the left, but will not change the elasticity. Your answer has been saved.Īn increase in costs will make the aggregate supply curve more inelastic. Higher aggregate demand will shift the aggregate demand to the right (try dragging this in the above diagram) and cause the equilibrium price level to rise (inflation). (Try dragging the lines to check on your answer.)Īn increase in aggregate demand will cause higher inflation. Referring to the above diagram, are the following statements true or false? In each case assume that nothing else changes. Second, pivot the AS curve so that it becomes more elastic and then again drag the two lines in turn and note the effects on Ye and Pe. The above diagram shows an aggregate demand curve and an aggregate supply curve, with equilibrium real national income (Ye) and the price level (Pe) where the two curves intersect.įirst, drag the two lines in turn to show the influence of (a) increased aggregate demand and (b) increased costs on the price level and national income. Section 3.6 Distribution of income - questions.Section 3.6 Distribution of income - notes.Section 3.5 Unemployment and inflation - simulations and activities.Section 3.5 Unemployment and inflation - in the news.Section 3.5 Unemployment and inflation - questions.Section 3.5 Unemployment and inflation - notes.Section 3.4 Demand-side and supply-side policies - in the news.Section 3.4 Demand-side and supply-side policies - questions.Section 3.4 Demand-side and supply-side policies - notes.Section 3.3 Macroeconomic models - simulations and activities.Section 3.3 Macroeconomic models - questions.Section 3.3 Macroeconomic models - notes.Section 3.2 An introduction to development - in the news.Section 3.2 An introduction to development - questions.Section 3.1 Introduction to development - notes.Section 3.1 Measuring national income - questions.Section 3.1 Measuring national income - notes.Topic pack - Macroeconomics - introduction.