Draw each diagram. Provide a key. State whether there is inflation, deflation, expansion or recession as appropriate. 1. The Trump Administration decreased corporate income taxes and also personal income taxes. The budget deficit increased. Illustrate with a short run aggregate supply and demand diagram. 2. During the Trump Administration, the Federal Reserve decreased the quantity of money by raising its target for the interest rate. Illustrate with a long run aggregate supply and demand diagram 3. In response to COVID 19, the Federal Reserve greatly increased the quantity of money and reduced its target for the interest rate. Illustrate with a short run aggregate supply and demand diagram. 4. The COVID 19 Pandemic saw many State governments locking down their workforces and factories. With more and more people taking the vaccine, the states are "opening up." Illustrate with a short run aggregate supply and demand diagram. 5. Many conservative Republicans (and libertarians) favor a balanced budget amendment. This would result in a very large decrease in the budget deficit (to zero.) Illustrate with a short run aggregate supply and demand diagram. 6. The Biden Administration might impose energy taxes that will greatly raise the price of oil, coal, and other energy sources. Illustrate with a short run aggregate supply and demand diagram. 7. Bernie Sanders and many other socialists argue that government can fund any spending program it wishes by creating money and spending it. Illustrate the effects of an increase in the quantity of money using a long run aggregate supply and demand diagram. Draw each diagram. Provide a key. State whether there is inflation, deflation, expansion or recession as appropriate. 1. The Trump Administration decreased corporate income taxes and also personal income taxes. The budget deficit increased. Illustrate with a short run aggregate supply and demand diagram. 2. During the Trump Administration, the Federal Reserve decreased the quantity of money by raising its target for the interest rate. Illustrate with a long run aggregate supply and demand diagram 3. In response to COVID 19, the Federal Reserve greatly increased the quantity of money and reduced its target for the interest rate. Illustrate with a short run aggregate supply and demand diagram. 4. The COVID 19 Pandemic saw many State governments locking down their workforces and factories. With more and more people taking the vaccine, the states are "opening up." Illustrate with a short run aggregate supply and demand diagram. 5. Many conservative Republicans (and libertarians) favor a balanced budget amendment. This would result in a very large decrease in the budget deficit (to zero.) Illustrate with a short run aggregate supply and demand diagram. 6. The Biden Administration might impose energy taxes that will greatly raise the price of oil, coal, and other energy sources. Illustrate with a short run aggregate supply and demand diagram. 7. Bernie Sanders and many other socialists argue that government can fund any spending program it wishes by creating money and spending it. Illustrate the effects of an increase in the quantity of money using a long run aggregate supply and demand diagram
