4. Determine what happens in the economy, all else equal, as a result of the event that occurs. Be sure to indicate which component of Total Spending/Aggregate Production that changes, which curve changes, how it changes and what the effect is on Real National Output and/or the CPI. Draw an AD/AS diagram that shows this. (Segment of AS of initial macroeconomic equilibrium is indicated in parentheses.) Assume time frame is between 6 and 9 months, macro first impact rule for shifting curves applies. a. Consumer Confidence Rises (Intermediate) b. US Dollar appreciates in value versus foreign currencies. (Classical) c. The cost of employing Doctors, Nurses, Orderlies and Lab Technicians increases in the Healthcare Industry (Intermediate) d. The cost of fuels used to operate Electric Power Plants drop (Keynesian) e. The Federal Government lowers Business Income Taxes (Keynesian) f. The Federal Government adds a 1% sales tax on all goods and services (Classical) The technology used to recycle plastic, paper and metal improves to the point that more recycled material may be used in production than new material (Keynesian) h. Consumers' wealth decreases (Intermediate) i. Government lowers excise taxes on Petrochemicals (Intermediate) j. NI in Canada, Europe, Australia & Latin America goes up (Keynesian) k. Cost of water, seed, fertilizer and labor goes up in the Agriculture industry (Classical) 1. The government reduces its spending on final goods/services & finished capital resources as part of Contractionary Fiscal Policy (Classical)