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Edit View History Bookmarks Tools Window Help In X MindTap - Cengage Learning X Now Tab X https:/g.cengage.com/staticb/ul/evo/index.html?deploymentid=58326424512 CENGAGE | MINDTAP Aplia Homework Fiscal Policy Attempts Average 1 /2 3. Effects of fiscal policy Assume that the economy Is currently producing at its potential output. Suppose the government decided to implement a tax cut to spur consumer spending, but everything else in the economy remained the same. On the following graph, shift the aggregate demand curve (AD), the short-run aggregate supply curve (SRAS), or both to show the intended short-run erect of this fiscal policy on the economy. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so If you try to move a curve and it snaps back to its original position, just drag it a little farther. O- SRAS AD -D- SRAS PRICE LEVEL REAL GDP Because temporary tax changes , they will be y effective as fiscal policy than anticipated. Grad