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2. Given the economic situations described in the accompanying table, indicate the appropriate changes in each of the listed factors. | AD curve I I

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2. Given the economic situations described in the accompanying table, indicate the appropriate changes in each of the listed factors. | AD curve I I Gov't | Budget increase | Taxes | purchases | surplus or I up or | up or | or | Situation decrease? | down? | down? | deficit?| | Unemployment is | currently 12 percent I and increasing. | Prices have been | increasing rapidly, | and the CPI has risen | 86 since last year. | Real output is I constant, inventories I are building up, and I retail sales are down. I | The economy is expand- | I ing rapidly, and thereI I are shortages of raw | materials and skilled | I workers

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