Explain how each of the following events may affect aggregate demand. In each case where there is a shift, explain which component of AD caused the shift.

1. Household and firm debt levels rise
2. Households are feeling very positive about the economy.
3. The exchange rate depreciates.
4. The government decides to repair bridges and highways.
5. The central bank increases interest rates.
6. Households demand more money to make the same purchases as a result of a higher price level.
7. The government increases the level of personal income tax.
8. Real wealth decreases as a result of a rising price level.