For each of the following events, identify which curve is affected (AD, SRAS), in which direction...

 

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For each of the following events, identify which curve is affected (AD, SRAS), in which direction it shifts (left/right), and what effect that has on output and the price level in the short run (higher/lower). a. The Federal Reserve buys bonds in open-market operations. b. Farmers across the United States suffer a prolonged period of droughts. c. There is an increase in immigration into the United States. d. A sudden spike in the oil price leads to heightened inflation expectations. e. An economic boom in the Eurozone boosts European demand for American goods. f. The US government raises the corporate income tax on American businesses. g. The pope writes an encyclical extolling the virtues of frugality and condemning consumerism, leading (catholic) households to save a larger share of their income. For each of the following events, identify which curve is affected (AD, SRAS), in which direction it shifts (left/right), and what effect that has on output and the price level in the short run (higher/lower). a. The Federal Reserve buys bonds in open-market operations. b. Farmers across the United States suffer a prolonged period of droughts. c. There is an increase in immigration into the United States. d. A sudden spike in the oil price leads to heightened inflation expectations. e. An economic boom in the Eurozone boosts European demand for American goods. f. The US government raises the corporate income tax on American businesses. g. The pope writes an encyclical extolling the virtues of frugality and condemning consumerism, leading (catholic) households to save a larger share of their income.

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a The AD curve is affected and shifts to the right which increases output and raises the price level ... View the full answer