8. (8 points) Identify which curve shifts (AD or AS) and in which direction, in the following examples: a. Congress pass
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8. (8 points) Identify which curve shifts (AD or AS) and in which direction, in the following examples: a. Congress pass
8. (8 points) Identify which curve shifts (AD or AS) and in which direction, in the following examples: a. Congress passes a law to decrease the income tax rate by 5%. b. The Fed raises the federal funds rate from 2.75% to 2.95%. c. Congress cuts government spending for public schools by 15%. d. The Fed buys bonds from the public.
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