Explain How Each of the Following Events Would Affect the Short-Run

question 87

Essay

Explain how each of the following events would affect the short-run aggregate supply curve.
a.A decrease in the price level.
b.A decrease in what the price level is expected to be in the future.
c.A price level that is currently lower than expected.
d.An unexpected decrease in the price of an important raw material.
e.A decrease in the labour force.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

---

Definitions:

Cerebellum

The “little brain” at the rear of the brainstem; functions include some nonverbal learning, processing sensory input, and coordinating movement output and balance.

Cerebellum

A region of the brain that plays an important role in motor control. It also contributes to coordination, precision, and accurate timing.

Reticular Formation

A network of neurons in the brainstem involved in arousal and consciousness.

Hypothalamus

A region of the brain that regulates many bodily functions, including hunger, thirst, temperature control, and hormone release.