For each of the following, forecast how prices and output will change by drawing an AD-AS graph, and explain your answers using the three-step recipe to forecast macroeconomic outcomes.

a. The Fed decreases interest rates amid concerns of a looming recession.

b. The latest data on consumer confidence indicate that consumers have become pessimistic about the future of the economy and are therefore spending less.

c. Innovations in solar cell technology cause energy prices to decline across the country.

d. The federal government passes a new bill that dramatically increases government spending on education and the military.

e. The Mexican government eliminates the tariffs it charges on goods exported from the United States.

f. Top executives report that they’re quite uncertain about the future, as trade deals with the country’s largest trading partners are being renegotiated and remain in flux.

g. Overcrowded ports have created chaos and significantly increased transportation costs for businesses across the country.