Economics AD AS Model

• AD/AS PRACTICE ].. Calvin, 111mll other cilllnlldre11., co11.vfumce 11:lbteill' pare11ts to ]!llllll'Cill111se more "lbig ticket" items for 11:illle Holidays. 2. Tb.e effed on procillldiomi wli.emi 111 5% excise fax is plmeed on several resources. � I\� 4-- A> A-D 1. Before: A 2. Shifter kJ.o\/lS, c:5f-fuJ 3. After: B 4. Gap: �ec-es7 ,e.-i;-�V 3. A illllrge ]!llllrcilllase of U.S. willlea11: by . sii.111 A,-.S LRA-S 41. A cut fum Ferller111l spem111lfumg for lHiealltlbt Care 5. 'Jl'lbte complete lllisimi11:egra11:i.on ll)f OPEC cmllsing ll)il prices to fall 'A- Ab LR 1. Before: A 2. Slbtifter 6 ov s(P<'•· & L� 3. After: B 4. Gap: Rec�s�cPilla,ry Jl. Before: A �2. Shifter Re�ott it'� ff ,l ..,.� 3. After: lEB 4. Gap:}f\f lq,+,'C'.J I\ a f"<{ ll. Before: A 1®% ·o1eere11se illll person111Il im:ome 11:lllA rates \... Ao� 3. After: lEB ...,,; lil. lG111p: 1'C\-f lctt 'o(lay fl 0..--.........i--· 2. SilllifterCcPl'ISulVl�,-r; ,4-t) t ft V\.J AD/AS PRACTICE SHEET The Change 7. A signific1mt increase in labor productivity AD/AS Model ·L-Rr\:S A;-- A� The Result 1.Before:A AS"\2. Shifter 1�'-'-c4.v, Y" 3. Mter: B 4. Gap: 1/4iq--\-1'01\C1 ry 1. Before: A 8. A severe recession in a country that imports many U.S. products. 2. Shifter Ne·.\-- ?-�,Pc'J/"'{s 3. Mter: B 4. Gap: 1. Before: A 9. The effect on investment when the government increases the mo11ey supply causing interest rates to fall. 2. Shifter "J, r-\/CS4 me"' l-- 3. After: B 4. Gap: 1 Aft{ t0ncuy 1. Before: A 10. Widespread fear of depression on the part of consumers 3. Mter: B 1. Before: A 11. To stimufate the ecmmmy, the government iirncre111ses spending on public works programs. 3. After: B 4. Gap: J'J\-{-(q ti 'o a '1 ,1 1. Before: A 12. A 12% decrease in nominal wages. 2.?b.mer � 0-(?" r--� . C( 5 3. After: B 4.Gap: }'�lor+ro,,c...