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Use the Aggregate Supply Aggregate Demand Model to explain the impact of each of the following events. In each case, indicate whether AD will shift
Use the Aggregate Supply Aggregate Demand Model to explain the impact of each of the following events. In each case, indicate whether AD will shift right or left, or if the SRAS curve shifts left or right. The United Auto Workers engages in an ongoing labor strike that impacts several states and all the major US auto manufacturers. There is a large increase in government spending on the US military as we send additional troops to Poland to strengthen their border with Ukraine. Due to COVID-19 the federal government authorizes an increase in unemployment compensation for workers who have lost jobs and a check for $1200 to every US tax payer. The Federal Reserve (FED) becomes worried about rising inflation and increases interest rates
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