Description Determine whether each of the following would cause a shift of the aggregate demand (AD ...

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Description Determine whether each of the following would cause a shift of the aggregate demand (AD) curve, a shift of the aggregate supply (AS) curve, neither, or both. Which curve will shift, and in which direction? What will happen to aggregate output and the price level in each case?   The price level decreases.   Which curve will shift? Which direction does it shift? What will happen to aggregate output? What will happen to the price level?   Consumer confidence increases.   Which curve will shift? Which direction does it shift? What will happen to aggregate output? What will happen to the price level?   The supply of resources decreases.   Which curve will shift? Which direction does it shift? What happens to aggregate output? What happens to the price level?   The wage rate decreases.   Which will curve shift? Which direction does it shift? What will happen to aggregate output? What will happen to the price level?   Explain whether each of the following statements is true or false.   The majority of people who are officially unemployed are not in the labor force. Some people in the labor force are not working. Everyone who is not unemployed is in the labor force. Not all people who are not working are unemployed.   Refer to the following data on the U.S. consumer price index and answer the questions below. Year CPI Year CPI Year CPI Year CPI 1988 125.8 1993 152.0 1998 160.5 2003 191.5 1989 131.5 1994 155.7 1999 174.1 2004 196.4 1990 137.5 1995 159.9 2000 179.7 2005 202.8 1991 143.7 1996 164.4 2001 184.6 2006 209.3 1992 147.5 1997 168.0 2002 187.4 Compute the inflation rate for each year (1988–1989, 1989–1990, 1990–1991, 1991–1992 etc.) using the CPI data for 1988–2006 in the table above. Show your work. Which years were years of inflation? What would you expect to happen to real interest rates during this time period if nominal rates remained unchanged? In which years did deflation occur? What would you expect to happen to real interest rates during this time period if nominal rates remained unchanged? In which years did disinflation occur?