State how and why each of the following affects the AD curve: a. An increase in government

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State how and why each of the following affects the AD curve:
a. An increase in government purchases.
b. A tax increase.
c. An increase in planned investment spending by firms caused by optimism about the future.
d. A decrease in the Fed’s inflation target.

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Principles of Economics

ISBN: 978-0073511405

5th edition

Authors: Robert Frank, Ben Bernanke

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