Lemo's Cars
The government lowers income taxes!
Which graph does this affect and how? (Name the shifter)
Consumer Spending increases along with AD
Taxes on cows increase!
Which graph does this affect and how? (Name the shifter)
Actions of the Government - AS decreases
The Reserve Ratio is increased!
Which graph does this affect and how? (Name the shifter)
MS increases - IR increase - investments decrease- AD decreases
Millions of cows die!
How is each graph affected and why? (Name the shifter)
AS decreases
AD increases- cow inventory decreases
Metal is expected to become much more expensive in the next 2 years!
Which graph does this affect and how? (Name the shifter)
Inflationary expectations - future prices are expected to rise - therefore AD increases
Cow grain becomes more expensive!
Which graph does this affect and how? (Name the shifter)
Resource Prices increase - AS increases
The government increases spending goods and services!
Which graph does this affect and how? (Name the shifter)
Government Spending increases - AD increases
Cow farmers are gifted enormous subsidies!
Which graph does this affect and how? (Name the shifter)
Actions of Gov. - AS increases
Car building machines learn how to go twice as fast!
Which graph does this affect and how? (Name the shifter)
Lemo starts exporting cars to Europe!
Which graph does this affect and how? (Name the shifter)
Net Exports increase - AD increases