Using our Aggregate Demand/Aggregate Supply model from chapter 20, predict how and why the following events would affect aggregate demand or aggregate supply, and in turn affect real output and the price level. (Concepts from chapters 16, 17, 20 and 21 should be reflected in your paper.)

Fracking technology matures and significantly reduces the costs of producing oil and natural gas.
The European Union dissolves and individual European countries enact large tariffs on the importation of American goods.
The Fed – fearing inflation – begins a large program of Open Market Sales in order to reduce the money supply. Interest rates rise as a result.
The U.S signs on to the Kyoto Protocols (climate change policies) and enacts large taxes on producers for the emission of carbon dioxide gasses.
Government embarks on major expenditures on bridges, highways, communication systems and other infrastructure.