AP Macroeconomics [A thorough explanation of the graphs is acceptable in place of a drawing]
Assume the United States is operating above full employment.
A. Identify one fiscal policy tool that will solve the problem.
B. Using a correctly drawn and labeled AD/AS graph and loanable funds graph, show and explain how the policy you identified in (a) will affect each of the following in the short-run:
-output and employment
-price level
-interest rates
C. Explain how the policy you identified in (a) will affect each of the following:
-International value of the dollar
-American exports (based on the changing value of the dollar)