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For each of the following events, draw an aggregate-demand/aggregate-supply diagram and explain the short-run effects on output and the price level in the U.S., assuming

For each of the following events, draw an aggregate-demand/aggregate-supply diagram and explain the short-run effects on output and the price level in the U.S., assuming policymakers take no action. Short run, both input and output prices are fixed

(a)The United States Geological Survey (USGS) identifies largest continuous oil and gas resource potential in Texas.

(a)The federal government cuts income tax rates for individuals.

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