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6. 1. Effect on the AS/AD graph The Consumer AD or SRAS: Price index falls Increase or Decrease: 5% from the previous year. Shifter: 2.

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6. 1. Effect on the AS/AD graph The Consumer AD or SRAS: Price index falls Increase or Decrease: 5% from the previous year. Shifter: 2. Result: Price Level rGDP 7. 1. Effect on the AS/AD graph The Federal AD or SRAS: Reserve increases Increase or Decrease: the quantity of money in Shifter: circulation. 2. Result: Price Level rGDP 8. 1. Effect on the AS/AD graph The government AD or SRAS: imposes new taxes Increase or Decrease: that target businesses. Shifter: 2. Result: Price Level rGDP

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