2. Explain how each of the following changes would shift the aggregate expenditure function (Chapter 12) and
Question:
2. Explain how each of the following changes would shift the aggregate expenditure function (Chapter 12)
and the aggregate demand curve (Chapter 14):
a. An increase in personal taxes
b. An increase in expected profits and business confidence
c. A decrease in the level of foreign GDP or real income
d. A decrease in the nominal money supply by the Federal Reserve
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