1) What effects might each of the following have on aggregate demand/aggregate supply? In each case use a diagram to illustrate the effect, explain why shifts occurred, and state the impact of each event on the price levels, the unemployment rate, and real GDP. a. Congress passes into law a $1.5 billion cut in personal income taxes. b. Significant technological advances in the renewable energy sector decrease the price of all electricity by 50% c. Increases in consumer confidence lead to a positive demand shock.

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A:

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Q: how do i exlpain this and im i doing a graph?

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Q: Discuss one (1) reason for the downward sloping aggregate demand curve.

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Q: 1. In the following table, determine how each event likely effects potential output (a.k.a.,…

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Q: this is all one question,but i dont know how these effect long run aggregate

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Q: 3.Explain the causes of shifting of aggregate demand and aggregate supply.

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Q: 1. As the aggregate demand curve shifts to the right:

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A: The above given cases are explained as follows:

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Q: 1. In the following table, determine how each event likely effects potential output (a.k.a.,…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 4. What effect would an increase in aggregate supply have on price levels and GDP?  ***Please…

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Q: 질문 3 Which of the following would cause a leftward shift of the aggregate demand curve? None of the…

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Q: 3 . An economy experiences an adverse supply shock. a) Draw an AD-AS diagram to illustrate the…

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