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For each of the following, forecast how prices and output will change by drawing and AD-AS graph, and explain your answers using the step by
- For each of the following, forecast how prices and output will change by drawing and AD-AS graph, and explain your answers using the step by step method to forecast macroeconomic outcomes.
- The latest data on consumer confidence indicate that consumers have become pessimistic about the future of the economy and are therefore spending less
- Innovations in solar cell technology cause energy prices to decline across the country.
- The federal government passes a new bill that dramatically increases government spending on the military
- The Mexican government eliminates the tariffs it charges on goods exported from Canada
- Top executives report that they're quite uncertain about the future, as trade deals with the country's largest trading partners are being renegotiated and remain in flux
- Automation by the largest shipping and transportation companies have significantly decrease the transportation costs for businesses across the country.
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