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For the problem 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. Make sure your name and assignment number are written on each page of graphs you submit. All text must be written in the text box provided.

In an effort to provide tax relief for households while still balancing the budget, Congress votes to raise business taxes and decrease personal taxes.

Microeconomics, Economics

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