Food and Allergies
Bread starts falling from the sky, and McDonald's and other Amercian restaurants struggle to find business. What will happen to C?
C decreases both because of restaurant unemployment and the loss of food-related industries. However, people gain more disposable income which increases C. IS shifts left/up to your interpretation which force is stronger.
Half the world’s population develops an allergy to the sun and light, meaning they can’t work in person or remotely. Explain what will happen to I.
I increases to supplement the decreased working population with advanced technology, however C decreases to a greater magnitude due to decreased income, outweighing.
IS shifts to the left, and LM goes up.
A rising hygiene trend among birds has them exclusively using dinner plates as toilets. Restaurants are fighting back to bring back customers, while the government is investing in both research and short-term cautionary measures. In an attempt to bring back customers, restaurants invest in bird prevention canopies to improve hospitality. The government also attempts to stimulate the economy with monetary policies.
IS: C decrease, I increase, G increase
LM: Money supply increases
Everyone has suddenly become allergic to air, yet they must breathe to survive. This has led to the whole world having only 2 years left to live since the air allergy takes two years to shut down the human body. All economic expectations and behavior have become short-term, and extreme pleasure-based consumption takes hold of all people’s decisions. How does this impact output and interest rates?
IS: C skyrockets(overpowering), I decreases substantially, G gives up
LM: P increase due to extreme demand
m/p decreases (real money supply)
Everyone is suddenly allergic to tall people, while bears have started a global feast on short people regardless of urbanization. How does this impact output and interest rates?
C decreases as people are afraid to go out, resulting in prices rising on Amazon and other online shopping platforms.
But consumption for safety precaustions rises（minimal effects）
Delivery prices increase
C decreases as jobs in hospitality, retail, and other industries decrease because of the fear of going out, allergies to tall people, and the shrinking population of shorter people.
I drops
No expansion in companies
G increases massively for people’s safety.
Prices skyrocket
Money supply increases as stimulus