lesson 10- equilibrium output

Question 1

draw a graph with SRAS and AD and LRAS, showing the equilibrium output

Answer 1

google for answer

Question 2

what is a demand side shock?
+examples

Answer 2

an unexpected event that affects demand positively or negatively
-sharp rise in interest rates and taxes
-stock market crashes
-recession

Question 3

what is a supply side shock?
+examples

Answer 3

an unexpected event that affects supply positively or negatively
-rise in prices
-COVID
-fall in oil prices

Question 4

what is the trade union militancy?

Answer 4

union where members unite to strike etc, leading to a wage increase

Question 5

what effect does a positive demand side shock have?

Answer 5

more GDP ,less unemployment , higher price level

Question 6

what effect does a positive SRAS side shock have?

Answer 6

more GDP ,less unemployment , lower price level