For each of the following, use a graph to show the shift in aggregate demand. a. Poor
Question:
For each of the following, use a graph to show the shift in aggregate demand.
a. Poor numbers from several leading economic indicators cause businesses to become pessimistic about the future of the economy.
b. Congress passes a new budget that increases government purchases by 3%.
c. Housing prices have been declining in recent years, leading homeowners to feel less prosperous.
d. The Chinese government eliminates the tariffs it charges on goods exported from the United States.
e. Banks become complacent and begin taking on riskier business loans at lower interest rates.
f. A rise in the price level leads the Fed to increase the real interest rate.
Step by Step Answer:
Principles Of Economics
ISBN: 9781319330156,9781319419769
2nd Edition
Authors: Betsey Stevenson, Justin Wolfers