1.The following exogenous (external) factors will shift AD. First, insert the original AD in the appropriate AS range, then show the shift to the new AD. Below the graph, state the change, either increase, decrease, or no change in P and RGDP.

a.To reduce high inflation, the government increases personal and business taxes.

P AS GDP Price Index Real GDP Answer for P and RGDP:P AS GDP Price Index Real GDPP AS GDP Price Index Real GDPP AS GDP Price Index Real GDP Answer for P and RGDP