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aggregate output and the price level

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Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, neither, or both?

Which curve shifts, and in which direction?

What happens to aggregate output and the price level in each case?

A. The price Level changes

B. Consumer confidence declines

C. The supply of resources increases

D. The wage rate increases

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Solution Summary

The solution provides the answers to the the curve shift and also the direction of the shift. Here the impact on the aggregate output is also mentioned for each case.

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A. Price Level Changes
Neither curves shift.

B. Consumer Confidence ...

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