The Queensland economy is initially in long-run equilibrium. But the economy is hit by a price increase in imported fertilizers which are essential for the state's agricultural sector. In the short run: the aggregate demand curve shifts left and the short-run aggregate supply curve shifts right. the aggregate demand curve shifts right and the short-run aggregate supply curve does not shift. the aggregate demand curve does not shift and the short-run aggregate supply curve shifts left. the aggregate demand curve shifts left and the short-run aggregate supply curve shifts left. the aggregate demand curve does not shift and the short-run aggregate supply curve shifts right.

The Australian economy is initially in long-run equilibrium. The Federal government now increases its spending on defence. In the short run: the aggregate demand curve shifts left and the short-run aggregate supply curve shifts left. the aggregate demand curve shifts left and the short-run aggregate supply does not shift. the aggregate demand curve shifts right and the short-run aggregate supply curve does not shift. the aggregate demand curve shifts left and the short-run aggregate supply curve shifts right. the aggregate demand curve shifts right and the short-run aggregate supply curve shifts right.

The New Zealand economy is initially in long-run equilibrium. But the economy is hit by a price increase in imported pesticides which are essential for the state's agricultural sector. In the short run, the short-run aggregate supply curve shifts right. In the long run, the price level returns to its original value, output returns to its potential, and real wages increase. In the short run, the short-run aggregate supply curve shifts left. In the long run, the price level returns to its original value, output returns to its potential, and real wages decrease. In the short run, the short-run aggregate supply curve shifts right. In the long run, the price level is lower than its original values, output returns to its potential, and real wages do not change. In the short run, the short-run aggregate supply curve shifts left. In the long run, the price level is lower than its original value, output returns to its potential, and real wages do not change. In the short run, the short-run aggregate supply curve shifts left. In the long run, the price level is lower than its original value, output returns to potential, and real wages increase.

The economy is initially at its long-run equilibrium. A diplomatic dispute with its trading partner countries now leads to a decline in its exports. In the short run, the aggregate demand curve shifts left. In the long run, the price level decreases, the output returns to its potential, and real wages decrease. In the short run, the aggregate demand curve shifts right. In the long run, the price level increases, the output returns to its potential, and real wages do not change. In the short run, the aggregate demand curve shifts right. In the long run, the price level increases, the output returns to its potential, and real wages increase. In the short run, the aggregate demand curve shifts right. In the long run, the price level increases, the output returns to its potential, and real wages decrease. In the short run, the aggregate demand curve shifts left. In the long run, the price level decreases, the output returns to its potential, and real wages do not change.

Other things being equal, if the national income of our major international trading partners were to rise, our (Australia's): Group of answer choicesaggregate demand curve would shift to the right.short-run aggregate supply curve would shift to the left.short-run aggregate supply curve would shift to the right.aggregate demand curve would shift to the left.

When the economy experiences a permanent positive supply side shock that shifts the long-run aggregate supply to the right, the short run aggregate supply curve: Question 2Select one:A.Will begin by shifting left, and then be pulled right by the long-run aggregate supply over time.B.None of these adjustments will occur.C.Will gradually shift right until it reaches long-run aggregate supply and the new long-run equilibrium.D.Will instantly shift right with the long-run aggregate supply to the new long-run equilibrium.