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For the problems below, prepare an explanation of the short-run effect (including the determinant of AD or AS that is causing the shift, the line that shifts [AD or AS], the direction of the shift [left or right], and the impact on output and price level [increase or decrease]) and submit a properly drawn and labeled aggregate demand and aggregate supply graph for the scenario.

3. When Congress authorizes a tariff on imported steel, steel producers around the world boycott American products.

4. Congress votes to cut spending on the space program.

5. Tourists flock to visit the major theme parks in Orlando, Florida.

6. The election of a new Congress causes consumer confidence to soar as expectations of future economic growth are solid.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M941087

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