In 2021, a columnist writing on barrons.com predicted that the U.S, economy was going to experience an increase in productivity, In March 2021. Congress enactod a $1.9 increase in spending, formally called The American Resclue Plan Act of 2021. Source: Matthew C. Klein, "Why the Post-Pandemic Future Could Be Bright: Productivity Gains Could Be Here to Stay." bacrons.com, January 8, 2021. a. What elfect would an increase in productivity have on the short.run and long-run eggregate supply curves? A. The short-run aggregate supply curve will shit to the right, while the long-run aggregate supply curve will not change. 8. The short-run aggregate supply curve will shift to the right,thile the long-run aggregate supply curve will shift to the left. C. The long-run aggregate supply curve will shilt to the right, while the short-run aggregate supply curve will not change. D. Both the short-run and long-run aggregate supply curves will shit to the right. b. What eflect does an increase in federal government spending have on the aggregate demand curve? A. It will shift the aggregate demand curve to the right B. It will shitt the aggregate demand curve to the left. c. It wat have ne elfect on the aggregate demand curve, because federal spending only allects aggrogato supply. D. It will have no eflect on the aggregato demand curve, becauso increases in federal soendino result in naual decroases in consumer consumotion.b. What effect does an increase in federal government spending have on the aggregate-demand Curvo? A. It will shit the aggregate demand curvo to the right. B. It will shif the aggregate demand curve to the left. C. It will have no effect on the aggregate demand curve, because federal spending only affects aggregate supply. D. It will have no effect on the aggregate demand curve, becusse incroases in foderal spending result in equal decreases in consumer consumption. c. Use your answors to parts a. and b. to draw a dynamic aggregate domand and aggregate supply graph showing the effects of the increased productivity and increased foderal government opending on the U.S, economy during 2021, holding constant any other factors that atfected the economy during that year. Assume that the shit in aggregate demand is greater than the shit in aggrogate supply. 1.) Using the line drawing tool, draw and label the new aggregate demand curve AD2021 2.) Using the fine drawing took, draw and lobel the new long-run supply curve LRAS,20et 3.) Using the line drawing fool draw and label the new short-run supply curve SRAS 2021 - 4.) Using the point drawing tool, piot and label the new equabbrium point e2021 Carviuly follow the insiructlons above and any draw the reguired objocts..

1. In 2021, a columnist writing on barrons.com predicted that the U.S, economy was going to
experience an increase in productivity, In March 2021. Congress enactod a $1.9 increase in
spending, formally called The American Resclue Plan Act of 2021. Source: Matthew C. Klein,
"Why the Post-Pandemic Future Could Be Bright: Productivity Gains Could Be Here to Stay."
bacrons.com, January 8, 2021. a. What elfect would an increase in productivity have on the
short.run and long-run eggregate supply curves? A. The short-run aggregate supply curve will shit
to the right, while the long-run aggregate supply curve will not change. 8. The short-run aggregate
supply curve will shift to the right,thile the long-run aggregate supply curve will shift to the left. C.
The long-run aggregate supply curve will shilt to the right, while the short-run aggregate supply
curve will not change. D. Both the short-run and long-run aggregate supply curves will shit to the
right. b. What eflect does an increase in federal government spending have on the aggregate
demand curve? A. It will shift the aggregate demand curve to the right B. It will shitt the aggregate
demand curve to the left. c. It wat have ne elfect on the aggregate demand curve, because federal
spending only allects aggrogato supply. D. It will have no eflect on the aggregato demand curve,
becauso increases in federal soendino result in naual decroases in consumer consumotion.b.
What effect does an increase in federal government spending have on the aggregate-demand
Curvo? A. It will shit the aggregate demand curvo to the right. B. It will shif the aggregate demand
curve to the left. C. It will have no effect on the aggregate demand curve, because federal
spending only affects aggregate supply. D. It will have no effect on the aggregate demand curve,
becusse incroases in foderal spending result in equal decreases in consumer consumption. c. Use
your answors to parts a. and b. to draw a dynamic aggregate domand and aggregate supply graph
showing the effects of the increased productivity and increased foderal government opending on
the U.S, economy during 2021, holding constant any other factors that atfected the economy
during that year. Assume that the shit in aggregate demand is greater than the shit in aggrogate
supply. 1.) Using the line drawing tool, draw and label the new aggregate demand curve AD2021
2.) Using the fine drawing took, draw and lobel the new long-run supply curve LRAS,20et 3.) Using
the line drawing fool draw and label the new short-run supply curve SRAS 2021 - 4.) Using the
point drawing tool, piot and label the new equabbrium point e2021 Carviuly follow the insiructlons
above and any draw the reguired objocts.