National Income and Price Determination

The action could temporarily support the value of the domestic currency but might induce future deficits if not supported by fundamental economic changes.

Selling foreign reserves has no immediate impact on balances but encourages long-term capital inflow stability resulting typically in sustained surpluses.

It triggers systematic depreciation patterns followed invariably with balanced payment equilibrium given altered perceptions regarding monetary policies alone.

The sale results primarily into persistent surpluses across all balances owing exclusively due external confidence created among international investors/traders.

While domestic firms might struggle abroad, overall national productive efficiency would decrease leading to an inward shift in the LRAS curve.

The innovation would enhance international competitiveness and shift the country's LRAS outward.

Technological innovation would diminish firms' international competitiveness but still increase national total factor productivity.

There wouldn't be any discernible effects on either competitive standing or long-run aggregate supply as innovations are typically short-lived.

It causes LRAS to shift rightward.

It reduces overall productivity and potential output.

It causes LRAS to shift leftward.

There is no effect on LRAS but on SRAS only.

The nation’s LRAS may shift leftward due to increased consumption that outpaces production capacity.

There will be no impact on the nation's LRAS since immigration only affects short-term economic conditions.

The nation’s LRAS may shift rightward because of an expanded labor force with higher productivity potential.

The nation’s price level might rise without changing the position of the LRAS curve owing to wage pressures from new workers entering the labor market.

Currency value

Interest rates

Taxes

Import quotas

The total amount of goods and services demanded at different price levels.

The potential output when all resources are used efficiently.

The actual output produced in the short run, given current prices.

The maximum output an economy can produce with existing technology.

No immediate effect but may cause outward shifts if higher education leads to technological innovations later on.

Movement is ambiguous due to possible shifts between private sector and public sector jobs by educated workers.

It results in inward movement due to increased costs for government funding education programs.

It shifts outward because a better-educated workforce enhances productivity and potential GDP over time.

LRASShiftsLeft2019DueToLaborShortage

The workforce expands increasing potential output.

ThereIsNoImpactOnAggregateSupplyInEitherTheShortOrLongTerm

ProductivityPerWorkerIncreasesLeadingToLowerOutput

It shifts the LRAS to the left due to decreased competitiveness in international markets.

It does not affect LRAS as it is determined by factors like technology, capital, and resources.

It decreases LRAS as it makes exports more expensive and reduces foreign demand for goods.

It increases LRAS by making imports cheaper and increasing consumer purchasing power.

It has no impact on the long run aggregate supply of a country.

It can decrease the labor force and lead to lower production and economic decline.

It can increase the labor force and lead to higher production and economic growth.