Chain of reasoning

Question 1

Aggregate demand events

Answer 1

Income tax rate
Interest rate
Project funded by government
Exchange rates
Consumer confidence

Question 2

SRAS events

Answer 2

Commodity prices
Wage rates

Question 3

LRAS events

Answer 3

Labour productivity
Technological advances
Skills training

Question 4

Decreased income tax rate

Answer 4

Increased disposable income=Higher C=Higher AD=Higher RNO/PL which measures GDP=Economic growth or higher standard of living

Question 5

Decreased interest rates

Answer 5

Cheaper to repay loans= Higher I=Higher AD=Higher RNO/PL which measures GDP=Economic growth or high standard of living

Question 6

Project funded by government

Answer 6

Higher G=Higher AD=Higher RNO or PL which measures GDP=Economic growth or high standard of living

Question 7

Exchange rates depreciates

Answer 7

Higher NX=Higher AD= Higher RNO or PL which measures GDP= Economic growth or high standard of living

Question 8

Decreased commodity wages/wage rates

Answer 8

Decreased COP=Higher SRAS=Higher RNO and PL=Higher GDP= Economic growth or standard of living