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There are many factors may change AD and AS, and the equilibrium. Please evaluate the effect of the following scenario on the AD curve, AS curve, and accordingly the effect on equilibrium price level and equilibrium GDP/output. It seems the best if you draw a graph for each scenario after you explain what might happen to AD and AS.
Congress decides to decrease personal income taxes, and to compensate for the lost revenue they decrease business subsidies.
Application of Nash Equilibrium and Game Theory with examples
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