Question: Q4. (SCHEMATIC) (20 points) Draw AS/AD curve with the initial curves represented with AS, and AD, and the equilibrium with point A. Then show the

Q4. (SCHEMATIC) (20 points) Draw AS/AD curve with the initial curves

Q4. (SCHEMATIC) (20 points) Draw AS/AD curve with the initial curves represented with AS, and AD, and the equilibrium with point A. Then show the short run effect of an agricultural disaster with point B. Then add the short run effect of a decline in income tax rates with point C. Is the price level in point definitely higher/lower than point A? Is the output level in point definitely higher/lower than point A

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