True or False:
1. The real wealth effect, the interest rate effect, and the open economy effect all shift the AD curve.
2. A change in the price level will not change aggregate demand.
3. A decrease in C, I, G, or X – M for reasons other than changes in the price level will shift AD leftward.
4. An increase in consumer confidence, an increase in wealth, or a tax cut may each increase consumption and shift AD to the right.
5. An increase in consumer debt, other things being equal, would tend to shift AD to the left.
6. If either business confidence increases or real interest rates rise, business investment will increase and AD will shift to the right.
7. A reduction in government purchases shifts AD to the left.
8. An economic boom in the economies of major trading partners may lead to an increase in U.S. exports to them, causing net exports to rise and AD to increase.