Draw an "aggregate supply-aggregate demand" diagram that shows an economy suffering from high levels of unemployment. Show the effects of the following events on the Aggregate Demand curve.
1) An increase in RGDP in Europe and Japan
2) A reduction in Medicaid and Medicare benefit levels.
3) A decline in U.S. households’ expectations of their future income.
4) An increase in business expectations of future aggregate demand growth
5) An increase in government spending on military hardware
6) A rise in the price level due to a sharp increase in the price of oil.
7) A decline in the prices of real estate and existing residential housing.
8) A sharp decline in the value of foreign currencies relative to the value of the $.