1. 2.6 Explain the effect, if any, that each of the following occurrences should have on the aggregate demand curve.

a. The government decreases income tax to encourage consumer spending.

b. The central bank reduces the reserve requirement rate.

c. A movement along the AD curve sets off in the economy:

the price level decreases.

d. Business confidence picks up and investment spending increases.

e. Production costs are positively affected by a worldwide drop in oil prices.

f. The central bank announces a surprise program of bond sales.