Determine the effect on aggregate demand of each of the following events. Explain whether it represents a

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Determine the effect on aggregate demand of each of the following events. Explain whether it represents a movement along the aggregate demand curve (up or down) or a shi of the curve (leward or rightward). 

a. A rise in the interest rate caused by a change in monetary policy 

b. A fall in the real value of money in the economy due to a higher aggregate price level 

c. News of a worse-than-expected job market next year 

d. A fall in tax rates 

e. A rise in the real value of assets in the economy due to a lower aggregate price level 

f. A rise in the real value of assets in the economy due to a surge in real estate values.

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Macroeconomics

ISBN: 9781319245269

6th Edition

Authors: Paul Krugman, Robin Wells

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