1. For the question below, write an explanation of the short-run effect (including the determinant of AD or AS that is causing the shift, the line that shifts (AD or AS), the direction of the shift (left or right), and the impact on output and price level (increase or decrease) and submit a properly drawn and labeled aggregate demand and aggregate supply graph for the scenario. Make sure your name and assignment number are written on each page of graphs you submit. All text must be written in the text box provided.

A. Assume that over the next ten years, the level of educational attainment in the US increases significantly.

B. A new law requiring all businesses to provide health care for their employees is signed by the President.

C. There is an increase in the expected rate of inflation in the economy.