Draw diagrams to explain how shifts in aggregate supply and


Draw diagrams to explain how shifts in aggregate supply and demand are likely to lead to changes in output and inflation when:

a) the government cuts income tax rates

b) the Fed sells government securities

c) the Fed lowers banks’ required reserve ratios

d) OPEC triples oil prices

e) the government institutes an effective job training program for high school dropouts

f) floods in the Midwest causes farm output to fall

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Business Economics: Draw diagrams to explain how shifts in aggregate supply and
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