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Suppose the government decided to increase taxes to rein in consumer spending, but everything else in the economy remained the same. On the following graph, shift the aggregate demand curve (AD), the short-run aggregate supply curve (SRAS), or both to show the intended short-r effect of this fiscal policy on the economy. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps ba to its original position, just drag it a little farther.

Suppose the government decided to increase taxes to rein in consumer spending, but everything else in the economy remained the same. On the following graph, shift the aggregate demand curve (AD), the short-run aggregate supply curve (SRAS), or both to show the intended short-r effect of this fiscal policy on the economy. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps ba to its original position, just drag it a little farther.

Survey Of Economics
Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter15: Fiscal Policy
Section: Chapter Questions
Problem 11SQP
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pls also do the graph thnksss

Suppose the government decided to increase taxes to rein in consumer spending, but everything else in the economy remained the same. On the following graph, shift the aggregate demand curve (AD), the short-run aggregate supply curve (SRAS), or both to show the intended short-run effect of this fiscal policy on the economy. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE LEVEL I REAL GDP SRAS AD AD SRAS ? To the extent that unemployment insurance helps maintain the incomes of laid-off workers, it acts as less discretionary fiscal policy necessary in order to bring the economy back to its potential output. more an automatic stabilizer permanent income a feedback effect I which makes
Transcribed Image Text:Suppose the government decided to increase taxes to rein in consumer spending, but everything else in the economy remained the same. On the following graph, shift the aggregate demand curve (AD), the short-run aggregate supply curve (SRAS), or both to show the intended short-run effect of this fiscal policy on the economy. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE LEVEL I REAL GDP SRAS AD AD SRAS ? To the extent that unemployment insurance helps maintain the incomes of laid-off workers, it acts as less discretionary fiscal policy necessary in order to bring the economy back to its potential output. more an automatic stabilizer permanent income a feedback effect I which makes
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