Question: Explain whether each of the following will cause a shift of the AD curve or a movement along the AD curve. a. Firms become more

Explain whether each of the following will cause a shift of the AD curve or a movement along the AD curve.
a. Firms become more optimistic and increase their spending on machinery and equipment.
b. The federal government increases taxes in an attempt to reduce a budget deficit.
c. The U.S. economy experiences 4 percent inflation.

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