Use appropriate graph(s) to explain the effect of each of the following events, if any, on the position of the short- and long-run aggregate supply curves and the aggregate demand curve for a small open economy. a) The country becomes home to thousands of immigrants who significantly increase its labour force. b) The Central Organization of Trade Unions in the country wins a 10 percent increase in money wage rates for low-income workers. c) There is a decrease in the income of the country's major trading partners. d) The country starts to harness geothermal energy, which it puts to use and sells the excess energy to neighbouring states.
Use appropriate graph(s) to explain the effect of each of the following events, if any, on the position of the short- and long-run aggregate supply curves and the aggregate demand curve for a small open economy. a) The country becomes home to thousands of immigrants who significantly increase its labour force. b) The Central Organization of Trade Unions in the country wins a 10 percent increase in money wage rates for low-income workers. c) There is a decrease in the income of the country's major trading partners. d) The country starts to harness geothermal energy, which it puts to use and sells the excess energy to neighbouring states.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Use appropriate graph(s) to explain the effect of each of the following events, if any, on the
position of the short- and long-run aggregate supply curves and the aggregate demand curve
for a small open economy.
a) The country becomes home to thousands of immigrants who significantly increase its
labour force.
b) The Central Organization of Trade Unions in the country wins a 10 percent increase in
money wage rates for low-income workers.
c) There is a decrease in the income of the country's major trading partners.
d) The country starts to harness geothermal energy, which it puts to use and sells the excess
energy to neighbouring states.
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