FEC1033 MACROECONOMICS

TUTORIAL 1

The shift of the aggregate demand curve to the left.

1. Income decrease
- When the income decreasing, the purchasing power will be
reducing and this will lead the curve shift to the left.
2. Interest rate decrease
- When the interest rate decreasing, the
3. Government expenditures decrease
- When the government expenditures decreasing, the
4. Taxation increases
- When the taxation increasing, the
5. Wealth decreases
- When the wealth decreasing, the
6. Investment decreases
- When the investment decreasing, the

The shift of the aggregate supply curve to the left.

1. Interest rate increase
2. Cost increase
3. Productivity decrease
4. Taxation increase