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List three things that would cause a RIGHTWARD SHIFT in the Aggregate Demand curve. List three things that would cause a RIGHTWARD SHIFT in the Aggregate Supply curve.Problem 2There has been extensive discussion of the “wealth effect.” The argument goes that inflated stock values were partially responsible for the strong U.S. economy of the 1990’s. Explain this linkage in words and then illustrate with an Aggregate Demand/Aggregate Supply diagram.Problem 3Explain the fundamental difference in the “Keynesian” view of the economy versus the “Classical” view.Problem 4Suppose the government increases education spending by $20 billion. How much additional consumption will this increase cause? Show your work.Problem 5Would a millionaire and a poor person have the same MPC? Explain thoroughly.Problem 6The federal government increases spending by $1 billion to develop a new fighter jet. If the MPC in the economy is 0.1, what will be the overall spending effect on the economy? Show your work.Internet Questionhttp://taxhistory.tax.orgGo explore the tax museum. While there select the dates 1861 to 1865. Provide a one page synopsis on the relative approaches taken by the North and the South with regard to tax policy. Which was superior and why?
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