AB 204 STUDY Extraordinary Success/ab204study.com AB 204 STUDY Extraordinary Success/ab204study.com | Page 14

At the long-run macroeconomic equilibrium, the stock market boom
occurs and this increases the value of stocks households hold. (See
the set of graphs below and shifts in graphs in the two-steps)
The government increases its purchases (spending) due to natural
disasters. (See the set of graphs below and shifts in graphs)
Assume the Central Bank reduces the money supply in the economy
which leads to an increase in the interest rates. (See the set of graphs
below and shifts in graphs)