6. 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: b. Argentina increases government spending to boost economic growth but economists fear already high inflation will increase. P AS GDP Price Index Real GDP Answer for P and RGDP C. Foreign demand for Chinese exports fall. Inflation decreases slightly. Show the effect on China's economy. AS GDP Price Index Real GDP Answer for P and RGDP d. As the country enters a recession, households increase saving. AS GDP Price Index Real GDP Answer for P and RGDP