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Indicate what happens, in the short run, to the aggregate demand curve (shift right or left),...

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Economics

Indicate what happens, in the short run, to the aggregatedemand curve (shift right or left), real GDP (increase ordecrease), and the price level (increase or decrease) in each ofthe following cases:
a) The interest rate rises,
b) Wealth falls,
c) The dollar depreciates relative to foreigncurrencies,
d) Households expect lower prices in the future
e) Business taxes rise.

Answer & Explanation Solved by verified expert
3.8 Ratings (337 Votes)
a interest rate rises Increase in interest rate decreases investment spending and thus aggregate demand Aggregate demand curve shifts left Real gdp decreases price level    See Answer
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