Analyze how supply and demand forces were affected by the raising of the national debt limit, the
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Analyze how supply and demand forces were affected by the raising of the national debt limit, the sequestering of the budget, and the fiscal cliff. If the Government had not increased the debt ceiling, and sequestered the budget would you expect the supply and demand and prices for goods to increase or decrease? For extra credit construct a production possibilities curve detailing the relationship between guns and butter before and after the debt ceiling was raised.
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