Problem
The economy of the U.S. has experienced some unusual occurrences in the past several months and no one really knows what will happen next. In fact, it is possible that anything could happen economically. So, let's suppose the following three events take place this year. Your mission, should you choose to accept it, is to discuss the nature of the impact each of these events will have on aggregate demand.
i. The federal government raises taxes on personal income and corporate taxes.
ii. The stock market falls 70% from its recent highs.
iii. Interest rates continue to rise.