Explain how each of the following will affect the AD curve (shift left, or right, or no
Question:
a. Feelings of job security among workers improve a lot.
b. Congress reduces income taxes for individuals and corporations.
c. European incomes are declining (their economies are in a recession).
d. The US dollar becomes weaker relative to other major currencies.
e. The general price level in the economy declines.
f. Businesses expect increasing profitability.
g. Households try to cut down on their debt.
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Related Book For
Economics
ISBN: 978-0073375694
18th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
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