1/8 Part 1 - Practice- For each of the following situations, identity the determinant (shifter) and indicate if the aggregate demand (AD) would most likely increase, decrease, or not change. Situation Determinant of AD Change in AD 1. Congress cuts personal income taxes by $20 million 2 Interest rates increase causing a decrease in capital stock. 3. Consumer confidence declines and people fear a recession. 4. Stock market collapses causing the loss of millions of dollars of assets. 5. The price level increases by 5% 6. Defense spending is increased due to military conflicts abroad