A city imposes a mandatory "guild fee" on sales of handcrafted goods. this tax causes the supply curve for handmade mailboxes to shift from s1 to s2. the fee is in effect a tax paid by sellers, as a fixed amount on each mailbox sold. use the area tool to draw the area representing the consumer surplus after the tax. your answer should be a triangle with three corners.

Money from an allowance or job is known as .

He interest rate effect is the change in real gdp caused by the federal reserve adjusting target interest rates. is the change in consumer and investment spending due to changes in interest rates resulting from changes in the aggregate price level. is the change in exports and imports, resulting from changes in the interest rate caused by changes in the aggregate price level. is the change in investment spending and government purchases caused by changes in money demand. is the change in interest rates, caused by changes to government purchases.

Crowding out is a phenomenon focused upon most by the macroeconomists of whereby a government deficit interest rates, which in turn private investment spending. this group also believed that fiscal policy is the only thing that can lower natural unemployment. is just as effective in countering recessions as monetary policy. can be used most of the time, but monetary policy becomes a better option when velocity is fluctuating. should be used only if the central bank follows a monetary policy rule. faces problematic lags in propagating changes throughout the economy.