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The Federal Reserves conducts an expansionary policy to lower interest rates. Topic: Aggregate Demand P AS Describe the effects of each of the following events on the US economy (i.e. What may happen to the price? To the real output?). Explain briefly what cause these effects (i.e. What happens to determinants of AD or AS or both? Why? ).Illustrate your answers in given AD-AS diagrams. Label your diagrams and changes carefully. a.) Consumers are confident about the future employment prospect. AS X e.) US dollar depreciates AS X AD b. ) Firms are very pessimistic about the economic outlook. AS X