Microsoft Word – Spring 2016 Macro Theory Final.docxa. Political Fighting in the Middle East, Iran’s nuclear program, and the emergence of ISIS caused households and businesses to be uncertain about...

Microsoft Word – Spring 2016 Macro Theory Final.docxa. Political Fighting in the Middle East, Iran’s nuclear program, and the emergence of ISIS caused households and businesses to be uncertain about the future of the U.S. economy. In response, households/businesses were delaying large purchases/projects until the situation was more under control and a new presidential administration was in place. Use the Aggregate Demand and Aggregate Supply diagram to discuss the predicted short-run and long-run impacts on the price level, real GDP and unemployment.