8. Do the following events have their initial impact on aggregate demand, long run aggregatesupply, or short run aggregate supply? Do the curves shift to the right or to the left? Show,using a graph for each question.a. The new government in Canada increases income taxes.AD/AS/LRAS:Equilibrium Price:Equilibrium Quantity:b. There has been an increase in investment in postsecondary education in CanadaAD/AS/LRAS:Equilibrium Price:Equilibrium Quantity:c. Canada experiences downward pressure on nominal wages.AD/AS/LRAS:Equilibrium Price:,Equilibrium Quantity:96

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Answered: 8. Do the following events have their…

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter8: Macroeconomic Equilibrium: Aggregate Demand And Supply

Section: Chapter Questions

Problem 11E

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