What effects would each of the following have on aggregate demand or aggregate supply? In each case use a diagram to show the expected effects on the equilibrium price level and the level of real output. Assume all other things remain constant.
A. A widespread fear of depression on the part of consumers.
B. A $2 increase in the excise tax on a pack of cigarettes.
C. A reduction in interest rates at each price level.
D. A major increase in Federal spending for health care.
E. The expectation of rapid inflation.
F. The complete disintegration of OPEC, causing oil prices to fall by one-half.
G. A 10 percent reduction in personal income tax rates.
H. A sizable increase in labor productivity (with no change in nominal wages).
I. A 12 percent increase in nominal wages (with no change in productivity).
J. Depreciation in the international value of the dollar.