Social Studies, 28.02.2021 15:50 naomicervero
1. Using the AS/AD framework in the short run, show by means of a diagram and explain with either words or economics shorthand what would happen in each of the following independent cases:
a) A sudden and significant rise in the stock market index
b) A tax holiday for investors who build factories for making washing machines
c) An increase in the minimum wage in a country
d) A rise in the price of imported aluminium
e) An increase in the personal income tax rate for middle class wage earn
Answers: 3
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