Determine whether the following government policies affect the aggregate demand curve or the short-run aggregate supply curve, and in which direction the appropriate curve would shift. To reduce the budget deficit, the government announces that households will pay much higher taxes beginning next year. The aggregate supply curve would shift to the right. The aggregate demand curve would shift to the right. The aggregate supply curve would shift to the left. The aggregate demand curve would shift to the left.

The interaction of individual choices because a type of fish is on the verge of extinction, the government imposes rules that prohibit fishing in the publicly owned spawning grounds. at first owners of fshing bouts complain about this restriction on where they can fish, but soon they notice that the number of adult fish swimming outside the protected area is much higher than it was before. with the restriction, each fishing boat ends up catching more fish than it did before the r which of the following principles of economic interaction best describes this scenario? o there is a tradeoff between equality and efficiency o markets usually lead to efficiency. o when markets do not achieve efficiency, government intervention can improve overall welfare o markets allocate goodseffectively