AD/AS PRACTICE SHEET The Change 7. A significant increase in labor productivity 8. A severe recession in a country that imports many U.S. products. AD/AS Model 1. Before: A 2. Shifter The Result 3. After: B 4. Gap: 1. Before: A 2. Shifter 3. After: B 4. Gap:
AD/AS PRACTICE SHEET The Change 7. A significant increase in labor productivity 8. A severe recession in a country that imports many U.S. products. AD/AS Model 1. Before: A 2. Shifter The Result 3. After: B 4. Gap: 1. Before: A 2. Shifter 3. After: B 4. Gap:
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
AP Macro AD/AS Practice
Transcribed Image Text:AD/AS PRACTICE SHEET
The Change
7. A significant increase in labor
productivity
8. A severe recession in a country
that imports many U.S. products.
9. The effect on investment when the
government increases the money
supply causing interest rates to fall.
10. Widespread fear of depression on
the part of consumers
11. To stimulate the economy, the
government increases spending on
public works programs.
12. A 12% decrease in nominal
wages.
AD/AS Model
1. Before: A
2. Shifter
3. After: B
The Result
4. Gap:
1. Before: A
2. Shifter
3. After: B
4. Gap:
1. Before: A
2. Shifter
3. After: B
4. Gap:
1. Before: A
2. Shifter
3. After: B
4. Gap:
1. Before: A
2. Shifter
3. After: B
4. Gap:
1. Before: A
2. Shifter
3. After: B
4. Gap:
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Step 1: Define the AD-AS model
VIEWStep 2: 1) Construct the AD-AS Model for the given scenario (7)
VIEWStep 3: 2) Construct the AD-AS Model for the given scenario (8)
VIEWStep 4: 3) Construct the AD-AS Model for the given scenario (9)
VIEWStep 5: 4) Construct the AD-AS Model for the given scenario (10)
VIEWStep 6: 5) Construct the AD-AS Model for the given scenario (11)
VIEWStep 7: 6) Construct the AD-AS Model for the given scenario (12)
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