4) Using AS-AD model to explain what would happen to the domestic output, unemployment, overall price level in the short-run in these following situations. Draw the AS-AD diagram. a) If people feel pessimistic about the future of the economy b) The government raises income taxes c) The exchange rate of VND/USD increases d) The State bank of Vietnam purchases government bond e) The US economy (our most important trading partner) recovers and grows quickly f) The State bank of Vietnam lowers the discount rate
4) Using AS-AD model to explain what would happen to the domestic output, unemployment, overall price level in the short-run in these following situations. Draw the AS-AD diagram. a) If people feel pessimistic about the future of the economy b) The government raises income taxes c) The exchange rate of VND/USD increases d) The State bank of Vietnam purchases government bond e) The US economy (our most important trading partner) recovers and grows quickly f) The State bank of Vietnam lowers the discount rate
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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