申論題

1.Using aggregate demand, short-run aggregate supply, and long-run aggregate supply curves, explain the process by which each of the following economic events will move the economy from one long-run macroeconomic equilibrium to another. Illustrate with diagrams. In each case, what are the sliort-run and long-run effects on the aggregate price level and aggregate output?

b. Tlie government lowers taxes, leaving households with more disposable income, wilh no corresponding reduction in government purchases. (7%)