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Explain how each of the following events affects the AD curve. a.An increase in consumer confidence leads to higher consumption spending. A. Aggregate demand shifts

Explain how each of the following events affects theADcurve.

a.An increase in consumer confidence leads to higher consumption spending.

A. Aggregate demand shifts to the right

B. Aggregate demand shifts to the left

C. Aggregate demand is unchanged

b. The government reduces income taxes.

A. Aggregate demand is unchanged

B. Aggregate demand shifts to the right

C. Aggregate demand shifts to the left

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