Use the as-ad model to describe what would happen to the

Reference no: EM13377160

Use the AS-AD model to describe what would happen to the price level and to the equilibrium level of aggregate output in the short run in the following situations:
a. The Fed sells bonds in the open market during a period of low unemployment and no excess industrial capacity.
b. The economy is far below capacity and the government lowers taxes
c. The economy is at or near full capacity and the government increases spending

Reference no: EM13377160

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