10 Match the following events with the effect each would have on either aggregate demand or aggregate supply. Prompts 2) A positive economic report has increased consumer confidence. The federal government increases taxes. 3) A technology that makes it easier to extract oil from shale has decreased the world price of oil. 4 5 The federal government runs a large budget deficit, increasing interest rates. Government increases regulations on financial markets, increasing costs on banks and credit unions. 6 A new form of automation has increased productivity in manufacturing jobs. 8 7 The US dollar depreciates relative to the currencies of most of our major trading partners. The federal government lowers all income tax rates. Answers Select match Select match Select match Select match Select match Select match Select match Select match 16 Points