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a) An increase in the domestic rate of interest;
b) A decline in consumer confidence;
c) A decrease in the general rate of taxation;
d) An increase in government expenditures;
e) An increase in the exchange rate (the home currency increases in
value);
f) An increase in the price of Brent crude.
2. Explain fully how the “Aggregate Supply” curve is derived under both
Keynesian and “classical” scenarios.
Tips: Ensure that you combine and integrate diagrams with textual discussion.
Start with appropriate definitions, and then apply them to answering the
question fully.
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