Problem
Economic policies are sometimes complex. The following events took place in the same year:
a. social security taxes increased by $20 billion;
b. social security benefits increased by $20 billion;
c. government spending decreased by $10 billion;
d. taxes decreased by $10 billion.
Explain how each of these policies affect aggregate demand and aggregate supply by themselves. What is the combined effect? Is this policy combination inflationary? Defend your answer.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.