Would there be movement along the curve or a shift of the curve?

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Economic Advisement Paper

Imagine that your Learning Team is a group of economic advisors working for the U.S. president. You have been tasked with evaluating the current state of the U.S. economy and making recommendations on how to improve it.

Analysis and Recommendations:

Describe the current state of the following economic factors and analyze how each affects aggregate supply and demand (AD/AS Model):

The Interest rate effect
Distribution of Income
Production Costs

Specifically;

If each of these factors increased which curve would be affected, would there be movement along the curve or a shift of the curve?

Develop a set of recommendations for the president regarding government spending and taxes based on the economic factors’ current state and the effect it would have on the AD/AS model. Discuss whether the team has chosen a Keynesian or Classical set of recommendations and why.

Include a AD/AS Model showing the movement of each of the factors above.

Write a 800- to 1,200-word report that summarizes the recommendations. Ensure at least two in-text citations and remember to title and reference your graphs.

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