AP Macroeconomics - Short Run AD / AS Equilibrium

Which of the following is not a SHIFTER of short-run aggregate supply?

• a change in price of resources

• a change in the population

• a change in government policy

• a change in future expectations about price

Imagine that Ethiopia discovers large reserves of oil underground that allow them to increase production within their economy. This is an example of a _____________________.

An increase in the price level within a country will lead to which of the following scenarios?

• A rightward shift in both of the curves

• A rightward shift in the SRAS curve and a leftward shift in the AD curve

• An increase in quantity supplied and a decrease in quantity demanded

• A negative supply shock

If the AD curve shifts to the left, which of the following is true?

• The equilibrium price will increase

• The equilibrium price will decrease

• SRAS will shift to the left

• Real GDP will decrease

Imagine that Russia is Vietnam's largest supplier of oil. Suddenly, Russia refuses to sell oil to Vietnam. This would cause which of the following changes?

• Vietnam's SRAS shifts to the left

• Vietnam's SRAS shifts to the right

• Vietnam's AD curve shifts to the left

• The price level in Vietnam will increase

Imagine that influential financial experts start to warn of a severe upcoming financial crisis. Which of the following will likely occur?

• Stock market decline and decrease in consumer spending
• Decrease in consumer spending and increase in the stock market

• Stable stock market and increase in consumer confidence
• Increase in consumer spending and stock market growth

Imagine that many influential financial experts warn of an upcoming economic crisis. Draw the impact that this will have on aggregate demand within the country. Label the new equilibrium price level and the new Real GDP.