AD and AS

The dollar depreciates relative to the yen

Production costs increase

New technology increases productivity of workers

A stock market bubble bursts and share prices tumble

If the Government passes a tax cut for the middle class...

During a recession the government increases spending on schools and public works

New oil discoveries cause large decreases in energy prices

wage rates rise past equilibrium Q_fe

Consumers and businesses are more confident about the future economy

Banks charge higher interest rates to keep up with inflation

BONUS QUESTION - China's low birth rate decreases labor force