1. Explain the influence of each of the following events on the quantity of real GDP supplied and aggregate supply in India and use a graph to illustrate.
U.S. firm moves their call handing, IT, and data functions to India.
Fuel prices rise.
Wall-Mart and Starbucks open in India.
Universities in India increase the number of engineering graduates.
The money wage rate rises.
The price level in India Increases.
2. Labor productivity is rising at a rapid rate in China and wages are rising at a similar rate. Explain how a rise in labor productivity and wages in China will influence the quantity of real GDP supplied and aggregate supply in China