The document describes three economic shocks and asks how each would affect equilibrium output and prices in the short-run and long-run according to the Aggregate Demand-Aggregate Supply model. The first shock is a large increase in commodity prices which would likely decrease output and increase prices in the short-run. The second shock is more Canadians vacationing and shopping domestically which would increase aggregate demand and output in the short-run. The third shock discusses new energy technologies which would decrease costs and increase output in the long-run.
Question 17 How does the economic shock described below affect equili.pdf
1. Question 17 How does the economic shock described below affect equilibrium output and
product prices in the Aggregate Demand-Aggregate Supply model? 2 points Short-run effect of a
large increase in commodity (input) prices for businesses: Question 18 How does the economic
shock described below affect equilibrium output and product prices in the Aggregate Demand-
Aggregate Supply model? 2 points Short-run effect of an increased number of Canadians
vacationing and shopping at home: Question 19 How does the economic shock described below
affect equilibrium output and product prices in the Aggregate Demand-Aggregate Supply model?
2 points Long-run effect of new and improved technologies in the energy sector:
