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Use an aggregate economy framework (AD/AS) to show the effects of the following event on the economy, starting at the long run macroeconomic equilibrium. The federal government raises taxes by 10% to deal with the growing budget deficits. Price AS Level AD P Real GDP The aggregate demand decreases The aggregate supply no shift v Impact on the economic indicators: real GDP decreases v Unemployment increases Inflation decreases State of the economy: The economy enters into: recessionUse an aggregate economy framework (AD/AS) to show the effects of the following event on the economy, starting at the long run macroeconomic equilibrium The federal government raises taxes by 10% to deal with the growing budget deficits. Level Use an aggregate economy framework (AD/AS) to show the effects of the following event on the economy, starting at the long run macroeconomic equilibrium. Remote work becomes the norm as firms realize greater worker productivity after allowing for more flexibility from their workers. level X. P Real GDP The aggregate demand decreases The aggregate supply increases Impact on the economic indicators: real GDP decrease Unemployment increases Inflation decreases State of the economy: The economy enters into: recessionUse an aggregate economy framework (AD/AS) to show the effects of the following event on the economy. In 2030 the economy is in an expansion and people learn that the economy is expected to continue growing because of low interest rates. At the same time, worker productivity continues to grow. The aggregate demand [ Select ] The aggregate supply [ Select ] V Impact on the economic indicators: real GDP [ Select ] V Unemployment [ Select ] Inflation [ Select ] State of the economy: The economy in the U.S.: [ Select ]