ADAS Determinants

Increased enforcement of immigration regulations causes workers to leave the country

Stock market crash decreases consumer wealth

Decreased energy and transportation costs due to increased domestic oil production

Income taxes are increased to close a budget deficit

Rising nominal wages due to low unemployment and tight labor market

Rising income levels in the US cause increased imports

Development of self-driving cars reduces commute times and enabled increased productivity

Increased worker productivity

What variables are affected during the transition from Short Run to Long Run?

Would cause increased output at lower price levels

What variables/measures are affected in the Short Run?

Domestic currency appreciates, causing increased imports and decreased exports

Government spending increases as a fiscal policy stimulus package is enacted

Businesses react to rising real estate prices and commercial lease rates

Rising home values give consumers a feeling of increased wealth

Interest rates rise as a result of the withdrawal of foreign capital from the banking system

Would cause increased output at higher price levels

Decreased environmental regulation due to weakening of the EPA

Would cause decreased output at lower price levels

Would cause decreased output at higher price levels

Which curve shifts to reflect the change in Wages and Resource Costs?

Consumers anticipate rising incomes due to Congressional discussions of minimum wage hikes

Free college tuition creates a large pool of skilled workers willing to take lower salaries

Upward spike in oil prices and transportation costs due to Middle East conflict

Which curve shifts to illustrate Growth?

Businesses begin anticipating a recession and decreased profits

Free college tuition decreases the indebtedness of young adults

Businesses are operating at capacity and expect increased demand in the future

Government spending declines as a conflict in the Middle East is resolved

A recession in Mexico causes incomes to decline, decreasing US exports