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For each of the following scenarios, state the effect on the AD curve. AD increases or decreases and why? a.Households increase their consumption (C) and
For each of the following scenarios, state the effect on the AD curve.AD increases or decreases and why?
a.Households increase their consumption (C) and the Govt decides to lower its spending (G).
b.The US, major trading partner of Canada is going through recession.
c.The price level increases.
d.The country's exchange rates weakens and thus make the imports expensive.
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